The following data are available about a noncancelable lease that involves a leased asset that was new at the inception date of the lease term on January 1, 2020

Lease term	5 years
Lessee's incremental borrowing rate	10%
Lessor's required rate of return	8%
Amount of each lease payment	$8,000
Fair value of the leased asset	$35,000
Estimated useful life of the asset	6 years
Guaranteed residual value	$2,000
Estimated residual value	$1,000
PVAD(5,8%)	4.31213
PVAD(5,10%)	4.16986
PVOA(5,8%)	3.99271
PVOA(5,10%)	3.79079
PV$1(5,8%)	0.68058
PV$1(5,10%)	0.62092

The lessors rate of return is not known by the lessee. Each lease payment occurs at the beginning of each lease period (January 1 of each lease year). The lessees fiscal year ends December 31. Provide the adjusting journal entries for December 31, 2020. Round to the nearest dollar. (1 point per journal entry)

Account	Debit	Credit

Account	Debit	Credit