S Ltd owns all the share capital of R Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2020 or 30 June 2021.

1. On 1 July 2019, S Ltd sold a motor vehicle to R Ltd for $17 000. This had a carrying amount to S Ltd of $12 000. Both entities depreciate motor vehicles at a rate of 10% p.a. on cost.

2. R Ltd manufactures items of machinery which are used as property, plant and equipment by other companies, including S Ltd. On 1 January 2020, R Ltd sold such an item to S Ltd for $67 000, its cost to R Ltd being only $60 000 to manufacture. S Ltd charges depreciation on these machines at 20% p.a. on the diminishing value.

3. S Ltd manufactures certain items which it then markets through R Ltd. During the period ended 30 June 2021, S Ltd sold for $12 000 items to R Ltd at cost plus 20%. By 30 June 2021, R Ltd has sold to external entities 75% of these transferred items.

4. R Ltd rented a spare warehouse from S Ltd for $60 000 p.a. The rental contract started at 1 January 2020 and ends at 31 December 2021. The payments are made annually in advance on 1 January.

Required

In relation to the above intragroup transactions:

Prepare adjusting journal entries for the consolidation worksheet at 30 June 2020 and 30 June 2021.