The following information is collected by you:

$1.$ GFP does not accrue warranty expenses for their products, expensing the amounts that are paid out to service the warranties. Based on the one$-$year warranty given by the company on the sale of their gym products you estimate that the company will have to pay $$200,000$ in warranties over the next year on gym equipment sales of $$2,000,000$ for $2023.$

$2.$ GFP issued $$800,000$ in $$4$ preferred shares on January $1,2023.$ The $8,000$ preferred shares must be redeemed, or bought back, at their $$100$ stated value per share, in $2025.$ The dividends are cumulative. If there are any dividends in arrears they must be paid before the redemption date. No dividends have been declared in $2023.$ The preferred shares are classified under shareholders' equity.

$3.$ To conserve cash, an arrangement was made at the end of $2023$ to exchange $10,000$ common shares in GFP for equipment from their supplier. The supplier carried the equipment in its accounting books for $$600,000,$ and the listed selling price in its catalogues was $$900,000.$ Similar equipment is sold for $$800,000$ if cash is paid. Common shares were last issued at $$100$ per share. GFP recorded this share issue at $$1,000,000,$ using the $$100$ price of the last issue

$4.$ Again, to conserve cash, GFP has reduced cash salaries to top management staff and granted stock options as compensation in January, $2023.$ GFP provides only note disclosure of the stock options, which have been valued by options pricing models at $$800,000,$ and vest at the end of $2024.$ The options may be exercised during $2025-2026.$ The services will be performed equally over the two$-$year period.

$5.$ To gain employee loyalty, employee stock option plans are in place. The options, sold for $$1$ each, can be exercised at a strike price of $$75$ to buy one GFP share. The exercise period is $2024-2025.$ The employees have purchased $100,000$ of these options, which are recorded as sales in the books of the company.

$6.$ At the end of $2023$ GFP bought back some of their own shares with a capital loss of $$120,000.$ These shares are expected to be reissued when employee stock option plans are exercised. The loss from the repurchase has been included in other incomes and losses.

$7.$ In $2023$ GFP issued $$1,000,000$ in bonds at par with detachable warrants to make them more marketable. Every $$1,000$ bond has $5$ warrants, each of which can be used to purchase one common share at a strike price of $$75$ per share during the exercise period $2024-2025.$ Without the warrants the bonds would be issued at $95.$ The entire proceeds of the bond sale have been booked as a liability.

$8.$ On January $1,2023$ GFP purchased a $3-$year insurance policy for $$180,000$ on its offices and equipment, and expensed the entire amount in that year.

$9.$ GFP has been following the tax rules $($CCA$)$ for calculating depreciation expense, but would like to change to the straight$-$ line method because it better matches the pattern of benefits obtained from their long$-$lived assets. UCC for the Property Plant and Equipment of the company at the beginning of $2023$ was $$600,000$ and the book value would have been $$700,000$ if straight line depreciation had been used. In $2023$ the depreciation expense and CCA were $$80,000$ and $$60,000$ respectively. No purchases of Property Plant and Equipment were made during $2023.$

$10.$ GF has had no collection problems from its clients, and feels that the current $2\%$ of net sales applied to calculate bad debt expense is excessive, thinking that $1\%$ would be more appropriate. Net sales in $2023$ were $$14,000,000.$

$11.$ Computer equipment with a fair value of $$80,000$ has been leased by the company. The lease term is $3$ years, the implicit interest rate is $5\%,$ the economic life of the equipment is three years, and the equipment will not have any residual value and remain with the firm at the end of the lease period. Payments of $$27,978$ are made at the beginning of each of the three years. The company has classified it as an operating lease until now.

$12.$ In September, $2023,$ a client sued the company for $$100,000$ in damages for injuries suffered using the company's equipment. The lawsuit has not been resolved as yet. John Legalese, the company lawyer, thinks that the company could settle for an amount between $$10,000$ and $$15,000.$

$13.$ Summarized statement of financial position for $2023-$ the company had total assets of $$12,000,000$ and liabilities of $$8,000,000.$

$14.$ The income tax rate is $30\%.$

$15.$ The firm has covenants with their creditors to maintain their debt$-$equity ratio at or below $2\mathrm{.}5$:$1.$

Required:

$1.$ On the basis of your recommendations calculate adjusted values for profit, assets, liabilities and shareholders' equity that comply with IFRS rules. $($Create the journal entries for any adjustments that you may make to adjust the accounts to comply with IFRS$)$