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Problem 9-3A On January 1, 2019, Blue Spruce Company purchased the following two machines for use in its production process Machine A: The cash price of this machine was $56,500 Related expenditures included: sales tax S2 55 , shipping costs S10 insurance during shipping s installation and testing costs $90, and $200 of oil and lubricants to be used with the machinery during its first year of operations. Blue Spruce estimates that the useful life of the machine is 5 years with a $4,350 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used Machine B: The recorded cost of this machine was $180,000. Blue Spruce estimates that he use ul life of the machinesers with a SL at the end of that time period. LO sa age value remaining Prepare the following for Machine A. (Round answers to O decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 1. The journal entry to record its purchase on January 1, 2019. 2. The journal entry to record annual depreciation at December 31, 2019 No. Account Titles and Explanation 1. Equipment Debit 59490 Cash 9490 2. Depreciation Expense Accumulated Depreciation-Equipment

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