On the 1 July 2019, Sun Ltd and Moon Ltd established a joint operation. All current and future contributions to be based on a 50:50 split, as are future distributions of output. On 1 July 2019, Sun Ltd contributed equipment which had a carrying amount of $2 000 000 and a fair value of $3 000 000 and Moon Ltd contributed cash of $3 000 000.

Note: Ignore tax effect.

Required:

Prepare the journal entries to account for the joint operators contribution to the books of Sun Ltd and Moon Ltd.