BikeEnterprises Ltd, produce racing cycles and have been very successful, producing many cycles that have been used in cycling tours and medal events. Due to this success, the machines used to produce cycles are being used more than original expected.

Two machines were purchased, paying cash, on 1 October 2018, $480,000 for the machines plus $60,000 for the installation of the machines and testing to have the machines ready for use. At the time of purchase the useful life was expected to be 8 years and it was expected the machines could be sold for $40,000 at the end of the 8 years. BikeEnterprises Ltd uses the cost model for all machines and equipment.

In 2020, BikeEnterprises cycles became very popular so the machines were used for longer hours and more cycles were produced. Due to these changes it was determined that from 1 July 2020 the useful life was now 4 years and the residual value would be $10,000.

During 2022 cycling technology changed significantly resulting in changes to cycle frames. BikeEnterprises determined at 30 June 2023 to use these two machines (purchased 1 October 2018) for repairing of older model bikes or producing a much lower quantity of cycles. Based on this, the value as at 30 June 2023 in use of the 2 machines was determined to be $40,000 and the fair value if the machines were to be sold was $37,000 but costs to sell the machines would be $2,000. It was also decided that the machines would be retained and used this way for 2 years and scrapped for nil amount on 30 June 2025.

Required

1. Prepare any general journal entries required for the years ended 30 June 2019 and 30 June 2020. Show all workings and justify your answer.

2. Prepare any general journal entries required for the years ended 30 June 2021 and 30 June 2022. Show all workings and justify your answer.

3. Prepare any general journal entries required for the years ended 30 June 2023 and 30 June 2024. Show all workings and justify your answer.