On 1 July 2016, Warwick Ltd leased a photocopier from Funnell Ltd. On that day, the photocopier had a fair value of $40,070. The lease agreement contained the following information:

Lease term	3 years
Annual payment, in advance on 1 July each year	13,000
Guaranteed residual value at the end of the lease term	6,000
Interest rate implicit in the lease	10%
The lease is cancellable only with the permission of Funnell Ltd

The expected useful life of the photocopier is 4.5 years. The annual payment included an amount of $2,000 p.a. to reimburse Funnell Ltd for the cost of paper and toner supplied to Warwick Ltd.

On 30 June 2019 (the end of the lease term), Warwick Ltd returned the photocopier to Funnell Ltd. Funnell Ltd then sold the copier for $5,000 on the same day.

Required:

Prepare the journal entries for Sudhir Ltd from 1 July 2016 to 1 July 2019.