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On 1 july 2023, Dalby Ltd entered into a joint operation agreement with Chinchilla Ltd to manufacture stevedoring equipment. It was agreed that each party

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On 1 july 2023, Dalby Ltd entered into a joint operation agreement with Chinchilla Ltd to manufacture stevedoring equipment. It was agreed that each party to the agreement would share the output equally. To commence the operation, contributions were as follows. 0 Dalby Ltd: cash of $2 000 000 and equipment having a $400 0 00 carrying amount and a fair value of $600 000 - Chinchilla Ltd: cash of $1 800 000 and plant having a carrying amount of $900 000 and a fair value of $800 000. Chinchilla Ltd revalued the plant it contributed to the joint operation prior to its transfer to the joint operation. Plant and equipment is depreciated (to the nearest month) in the joint operation's books at 20% p.a. on cost. During December 2023, both parties contributed an additional $1 500 000 cash. The following information, in relation to the joint operation's operations for the year ended 30 june 2024, was provided by the operations manager. (a) Costs incurred for the year ended 30june 2024 Wages $ 1 200 000 Raw materials 2 150 000 Overheads 1 860 000 Depreciation 470 000 5 680 000 Work in progress at 30 June 2024 $ 3 100 000 (b) Receipts and payments for the year ended 30 June 2024 Payments Receipts ? Contributions $ 6 800 000 Plant (10 July 2023) $ 950 000 Wages 1 150 000 Accounts payable 1 980 000 Overhead costs 1 810 000 Operating expenses 440 000 $ 6 330 000 $ 6 800 000(c) Assets and liabilities as at 30]une 2024 Cash Raw materials Work in progress Inventories Plant and equipment Accumulated depreciation plant and equipment Accounts payable Accrued expenses Dr $ 470 000 360 000 3 100 000 580 000 2 350 000 Cr $ 470 000 530 000 100 000 Required Prepare the journal entries in the records of Dalby Ltd in relation to the joint operation for the year ended 30 June 2024

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