On 1 July 2021, Warwick Ltd leased a machine from Bath Ltd. On that day, the machine had a fair value of $43,500. The machine is expected to have an economic life of 6 years. The lease agreement, which cost Warwick Ltd $390 to draft, contained the following information: 4 years Lease term Annual payment, in advance on 1 July each year 12,300 9,000 Guaranteed residual value at the end of the lease term Residual value at the end of the useful life 5,000 7% Interest rate implicit in the lease The lease is cancellable only with the permission of Bath Ltd The annual payment of $12,300 by Warwick Ltd included an amount of $2,300 p.a. to reimburse Bath Ltd for the insurance and maintenance cost paid by Bath Ltd. The machine will be depreciated on a straight-line basis. At the end of the lease term, Warwick Ltd returned the machine to Bath Ltd which sold it for $6,000 on the same day. Required: (a) Prepare the journal entries for Warwick Ltd from 1 July 2021 to 30 June 2022. (10 marks) (b) Prepare the journal entries for Warwick Ltd from 1 July 2024 to 30 June 2025. (13 marks)