Hi. I'd like some help with the following issue regarding leases.

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 started with the following adjusting entry to record the present value of the ovens.

Debit Ovens 101,513.84

Credit Long-Term Liability 101,513.84

I just wanted to see if this entry is correct, and also get some help in setting up the effective interest table.