A company leases a retail space under a $5-$year operating lease. The annual lease payment is $$60,000,$ due at the beginning of each year. The company also makes an initial security deposit of $$20,000$ which is refundable at the end of the lease. Prepare the initial journal entries to record the lease commencement and the first lease payment.

A company leases a retail space under a $5-$year operating lease. The annual lease payment is $$60,000,$ due at the beginning of each year. The company also makes an initial security deposit of $$20,000$ which is refundable at the end of the lease. Prepare the initial journal entries to record the lease commencement and the first lease payment.

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