Opcap, Inc., a publicly traded company, recently entered in to a lease agreement on January1, Year1, for property to be used to operate a regional hamburger vending business. The lease was properly classified by the lessor and the lessee as an operating lease. Opcap is under contract to pay annual rental fees of $120,000 on each December31 for5 years.

Select from the option list provided the journal entries, if any, for each event below. Each choice may be used once, more than once, or not at all. If no entry is necessary, select "No entry required" in the Entry column.

Event

Entry

1. Lessee's entry to record the lease at inception.Lease expense

Cash2. Lessor's entry to record the lease at inception.3. Lessee's entry to record on December 31, Year 1.4. Lessor's entry to record the initial payment on December 31, Year 1.5. Lessee's entry to record depreciation of the leased property.