Lessor Co. enters into an operating lease of property with Lessee Co. on January 1, 2020, for a five-year term at an annual fixed lease payment of \(\$ 10,000\) (beginning of period payments). Prepare the journal entries in 2020 for the lessee assuming that the lessee is aware of the rate implicit in the lease of \(5 \%\).

a. January 1,2020 -Record the right-of-use asset.

b. January 1,2020 -Record the lease payment.

c. December 31, 2020-Record the adjusting entry.