Sawtell Ltd., a banana packaging company, commenced business on 1 Jan 1990. Sawtell Ltd. does not yet use International Financial Reporting Standards (IFRS).

Relevant to this question are the following account balances as at 31 December 2017:

Provision for tsunami $4,000 (Cr)

Future tsunami expense $4,000 (Dr)

Research and development expense $9,000 (Dr)

Inventories (bananas) $8,000 (Dr)

Dividend payable $6,000 (Cr)

Share investments (1000 shares in Hulbert Ltd) $9,000 (Dr)

Sawtell must now translate some of its accounts into IFRS. Requirements of IFRS relating to this question are summarised below:

1. Extract from IFRS standard on Provisions:

A provision should be recognised when:

(i) an enterprise has a present obligation (legal or constructive) as a result of a past event;

(ii) it is probable that an outflow of economic resources will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

2. Research and development can be carried forward subject to meeting IFRS criteria.

3. Inventories must be valued at lower of cost or Net Realizable Value.

4. Financial assets such as short term investments must be measured at market value.

Other relevant data:

1. There has never been a tsunami near Sawtell's operations in last 100 years.

2. Of the $9,000 research and development expense, $1,000 satisfies IFRS criteria to carry forward.

3. The share investments are held for short term profit-making purposes. As at reporting date, shares in Hulbert Limited were trading for $7.00 each on the stock exchange.

4. The directors have recommended a dividend of $6,000 be paid. As of reporting date the shareholders had not met to approve this dividend, but the directors have recorded $6,000 as dividend payable anyway.

5. As at reporting date the Net Realizable Value of inventories was $1,000.

Required: Complete General Journal (Dr/Cr) entries to adjust Sawtell's books for IFRS suitability, for the year ended 31 December 2017.