Referring to the information in Brief Exercise 17-26, show the balance sheet presentation on December 31, 2020, and the income statement presentation for the year ended December 31, 2020.

Exercise 17-26

Pier10 Inc. entered into a 5-year lease and recorded a right-of-use asset and lease liability of \(\$ 88,000\) on January 1, 2020. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5\%. The equipment under lease had an estimated 5-year useful life with no residual value. The first lease payment of \(\$ 19,358\) was due upon commencement of the lease. Record Pier10 Inc.'s journal entries during the year of 2020 assuming that the lease is properly classified as a finance lease.

a. January \(1,2020 \quad\) Record the right-of-use asset and lease liability.

b. January \(1,2020 \quad\) Record the lease payment.

c. December 31, \(2020 \quad\) Record the adjusting entries.