Hi, I had a question about the basic journal entry for the following lease scenario:

Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs for 6 years with an implicit interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries.

I calculated the present value as $20,000(5.325) = $106,590

Debit-Ovens $106,590

Credit-Lease Liability $106,590

I'm pretty sure the present value is correct, but I was told that my accounts were wrong? And is the rent payment due at the beginning of the lease? This was all the information I was given and I'm not sure how to put it together.