Operators share output    LO4 After prospecting unsuccessfully for a number of years for gold, in November 2020 Greens Pool Ltd finally found an economically viable deposit. Realising that it did not have sufficient expertise to operate a gold mine successfully, Greens Pool Ltd formed an unincorporated joint operation with Apollo Bay Ltd, agreeing to share the output of the mine equally. It was agreed that the two operators would initially contribute the following assets. Greens Pool Ltd: Capitalised exploration costs, including permits licences, and mining rights, currently recorded by Greens Pool Ltd at $200 000 $ 800 000 Cash 700 000 Apollo Bay Ltd: Cash 1 500 00 The joint operation commenced on 1 January 2021. By 31 December 2021, the mine had been operating successfully. It was reliably estimated at the commencement of the project that the mine had expected reserves of 100 000 tonnes. In the first year following commencement, 5000 tonnes of gold was extracted, while in 2016, 10 000 tonnes was extracted. This output was distributed to the operators equally. All costs except general administration costs were capitalised into the cost of the output, with depreciation of equipment and capitalised exploration costs being written off in proportion to the depletion of the reserves. General administration expenses were allocated to the operators equally. The financial statements of the joint operation over the first 2 years of operation showed the following information. Cash receipts and payments 2021 2022 Balance at 1 January — $ 300 000 Contributions from operators $2 200 000 1 200 000 2 200 000 1 500 000 Plant and equipment 800 000 190 000 Wages 600 000 660 000 Materials 200 000 240 000 General administration 300 000 300 000 1 900 000 1 390 000 Balance at 31 December $ 300 000 $ 110 000 Statement of financial position 2021 2022 Capitalised exploration costs $ 760 000 $ 680 000 Plant and equipment 800 000 990 000 Accumulated depreciation (40 000) (140 000) Cash 300 000 110 000 Materials 50 000 40 000 1 870 000 1 680 000 Accrued wages 10 000 20 000 Accounts payable (materials) 20 000 30 000 30 000 50 000 Net assets $1 840 000 $1 630 000 Operators’ equity: Contributions as at 1 January 3 000 000 1 840 000 Additional contributions 1 200 000 3 000 000 3 040 000 Less: Output distributed 860 000 1 110 000 Allocation: general administration 300 000 300 000 1 160 000 1 410 000 Balance at 31 December $1 840 000 $1 630 000 Required Prepare the journal entries in the records of Greens Pool Ltd to record its interest in the joint operation for the years ending 31 December 2021 and 2022.