Adams Leasing (lessor) agrees on January 1, 2019, to rent Healthy Diner (HD) (lessee) the equipment that HD requires to expand its restaurant. The lease agreement calls for 10 annual lease payments of $50,000 at the beginning of each year. HD determined that the present value of the lease payments, discounted at 11%, is $326,852. The leased equipment has an estimated useful life of 10 years and no residual value. HD uses the straight-line method for depreciating similar equipment that it owns. 

Required: 

a. Prepare a lease amortization schedule for this lease for the lessee. 

b. Prepare the necessary journal entries for 2019 and January 1, 2020, for the lessee.