Present journal entries to record each of the following events relating to a polishing machine owned by Crawford Company. Crawford uses the straight-line method of recording depreciation on machinery and has a December 31 fiscal year.

On January 1, Year 1 Crawford Company acquires a polishing machine costing $60,000 for cash. It estimates the machine to have a nine-year life and $6,000 salvage value. Select the journal entry for the acquisition of the machine and explain why:

A. Debit: Property, Plant, and Equipment (+A) $54,000

Credit: Note Payable (+L) $54,000

B. Debit: Property, Plant, and Equipment (+A) $60,000

Credit: Note Payable (+L) $60,000

C. Debit: Property, Plant, and Equipment (+A) $60,000

Credit: Cash (-A) $60,000

E. Debit: Property, Plant, and Equipment (+A) $60,000

Credit: Cash (-A) $60,000