Jen and Barry’s Ice Milk Company used cash to purchase a new ice milk mixer on January 1, 2011. The new mixer is estimated to have a 20,000-hour service life. Jen and Barry’s depreciates equipment on the service-hours method. The total price paid for the machine was $57,000. This price included $2,000 freight in, $1,800 installation costs, and $3,000 for a 2-year maintenance contract.

During 2011, Jen and Barry’s used the machine for 2,500 hours; in 2012, 3,000 hours. Prepare all related journal entries for the purchase of equipment, annual depreciation, and maintenance expense for 2011 and 2012.