On 1 July 2020, P Ltd entered into a joint operation with H Ltd to manufacture magnifying glasses. It was agreed that each party would have 50% interest in the joint operation and share the output equally. P Ltd initially contributed $3,000,000 cash. H Ltd contributed machinery that had a fair value of $3,000,000, which was recorded in its balance sheet at $2,800,000.

The joint operation recorded the costs of production for the year ended 30 June 2021 as follows:

Wages 480,000

Raw materials 810,000

Overheads 510,000

1,800,000

Finished Goods Inventory(1,350,000)

Work in Progress $450,000

The joint operation recorded cash receipts and payments for the year ended 30 June 2021 as follows:

Receipts:

Original contribution $3,000,000

Payments:

Machinery (purchased30 June 2021) $600,000

Wages $420,000

Raw materials $780,000

Overheads $450,000

Operating expenses $360,000

$2,610,000

Closing cash balance $390,000

At 30 June 2021, the joint operation's financial position stood as follows:

Cash $390,000 Accounts payable $90,000

Machinery 3,600,000 Accrued wages 60,000

Finished Goods Inventory 1,350,000

Work in Progress 450,000

Total Assets $5,790,000 Total Liabilities $150,000

The joint operation does not record any depreciation. Assume that each joint operator depreciates the machinery in its own records at 20% per annum on cost.

Required:

Prepare all journal entries in the records ofH Ltdin relation to the joint operation during the year ended 30 June 2021. Show all supporting calculations.