Gomez Inc. leases a vehicle from CareMax Inc. on January 1, 2020, for a three-year period, appropriately classified by Gomez Inc. as an operating lease. Gomez agrees to make $9,600 annual payments beginning on January 1, 2020. Prepare the journal entries for Gomez in 2020 assuming that Gomez is aware of the rate implicit in the lease of 6%.

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

b. January 1, 2020Record the lease payment.

c. December 31, 2020Record the adjusting entry.