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During the reporting period ending 30 June 2018, Super Energy Limited constructed a nuclear power generator just outside of Melbourne. The cost of the power

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During the reporting period ending 30 June 2018, Super Energy Limited constructed a nuclear power generator just outside of Melbourne. The cost of the power generator and associated technology amounted to $13500000. Other costs associated with the construction amounted to: The plant was ready to start generating power on 1 July 2018, with actual generation starting on 1 October 2018. At the end of the power plant's useful life, which is expected to be 10 years, Super Energy Limited is required by environment protection authority to remove the plant, and complete the restoration process. After consulting its own engineers and environmentalists, Super Energy Limited estimates these costs to be: Super tnergy Limited uses a discount rate of 10 per cent. Complete the following: 1. Prepare the journal entries necessary to account for the power plant for the years ended 30 June 2018, 30 June 2019 and 30 June 2024. Ignore depreciation and round off the amounts to nearest dollar. (9 marks available) 2. Prepare the table showing the calculations of interest expense and Provision for restoration costs. PV tables are accessible via this link. ( 3 marks available)

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