Larry Ltd, Curly Ltd and Moe Ltd entered into a joint operation on 1 July 2019 to explore and mine gold in Papua New Guinea. The economic life of the joint venture is 10 years. The jointventure agreement states that each operator will contribute the following assets to establish the joint operation and to provide for initial running costs. The fair value of the amountscontributed is shown in the following table:

From Larry Ltd Exploration and Evaluation Asset PPE Cash	2,000,000 1,000,000 1,000,000	4,000,000
From Curly Ltd Cash	6000,000	6,000,000
From Moe Ltd PPE Cash	3,000,000 3,000,000	6,000,000

The contractual arrangement is that the operators divide extracted gold in proportion to their contributions to establish the joint operation, that is, the ratio 25:37.5:37.5. The operatorsmeet the costs of production in the same proportions.

The joint operation is managed by Larry Ltd who is entitled to receive a yearly fee of

$130,000 annually. The cash contributed by the operators is used by the manager topurchase additional property plant and equipment at a cost of $8,000,000 from independent third parties. These assets are held as tenants in common in proportion to the operatorscontribution ratio 25:37.5:37.5.

The Exploration and Evaluation Asset had been recorded in the books of Larry Ltd at

$1,200,000. The property plant and equipment contributed to the joint venture by Beers Ltdwas originally purchased for $3,000,000 with accumulated depreciation of $1,400,000 at 1 July 2019. This asset is considered impaired. Larry Ltd decides not to revalue its remaining interest in the non-current assets contributed to the joint operations. The PPE contributed byMoe Ltd was new and recorded at $6,000,000.

The following was extracted from the accounting records kept by the joint venture managerfor the year ending 30 June 2020.

Joint venture balance sheet extract at 30 June2020
Cash and cash equivalents	480,000
Supplies	200,000
Undistributed gold	1,000,000
Exploration and Evaluation Asset	2,000,000
Property Plant and Equipment	12,000,000
Accounts payable and Wages payable	(1,000,000)
Net assets	14,680,000

Joint venture cash receipts and payments for the year ended 30 June 2020

Cash contributions from operators Less: Cash payments	10,000,000
Plant and Equipment	(8,000,000)
Wages	(900,000)
Materials and supplies	(350,000)
Utilities	(150,000)
Management fee	(120,000)
Cash balance at the end of the period	480,000
Cost of production statement for the year ended 30 June 2020
Wages paid	900,000
Wages payable	200,000	1,100,000
Materials and supplies paid	350,000
Materials and supplies payable	150,000
Less: Materials and supplies on hand	(200,000)	300,000
Utilities		300,000
Management fee		120,000
Total production cost		1,820,000
Less: Undistributed Gold		1,000,000
Cost of gold distributed		820,000

By 30 June 2020 both Larry Ltd and Curly Ltd had sold 60% of their share of output whileMoe Ltd had sold 50% of its share of output. All three operators make sales to customers at amark-up of 40% on the full cost.

Prepare the required entries for Curly Ltd only (you do not need to record for the other two operators) forthe year ended 30 June 2020.