Faulty freezers As a result of regular load shedding, Jacobs Limited noted that some of their industrial freezers are not working as effectively as they should. The freezers that were identified as being faulty had a total cost of R1 850 000 and accumulated depreciation of R632 000 on 30 June 2022. You can assume that the depreciation for the 2022 finan- cial year has already been accounted for Management determined the fair value of the freezers to be R500 000 on 30 June 2022, and the cost of disposal will amount to R15 000. The value in use of the machine was calculated to be R500 000 on 30 June 2022. Replacement freezers Jacobs Limited's Financial Director has done research to identify the company's best option to replace the faulty freezers. The Financial Director identified an American supplier that sells robust industrial freezers, and the board approved the purchase of two of these freezers. The freezers were purchased for $88 000 each and were shipped FOB on 15 June 2021. The freezers were delivered to Jacobs Limited's premises on 10 July 2021. The purchase price is payable by 31 July 2021, Jacobs Limited paid the amount on 30 July 2021. Jacobs Limited paid a further R25 000 per freezer to be installed on their property. The installation was completed and paid for in cash on 25 July 2021. The freezers were ready for use on 31 July 2021. The freezers are estimated to have a useful life of 6 years and no residual value. The following exchange rates are applicable: Spot rate $1 = R14,36 $1 = R14,24 $1 = R14,51 $1= R14,48 . Date 15 June 2021 30 June 2021 10 July 2021 30 July 2021 HFAC332-1-Jan-Jun2023-5A1-CP-V3-12102022 General Information All classes of property, plant and equipment are accounted for using the cost model. . Average rate $1= R14,40 $1 = R14,42 $1= R14,48 $1 = R14,45 D Depreciation on all assets is provided for according to the straight-line method, and residual values are insignificant. You can ignore all tax consequences. REQUIRED: 2.1) Prepare the general journal entries required in the records of Jacobs Limited for the year ending 30 June 2022 to account for the transactions relating to the Faulty freezers. Dates and narrations are not required. (9 marks) 2.2) Prepare ALL the general journal entries required in the records of Jacobs Limited for ONLY the year ending 30 June 2022 to account for the transactions relating to the Replacement freezers Include dates when preparing the journal entries. Narrations are not required. (15 marks)

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