On January 1, 2019, Archibald Industries entered into an agreement to lease office space for a five-year period. Details of the lease are: 

■ Payments: $55,000 per annum first due at the commencement date. 

■ Payment includes: $50,000 for office rental and $5,000 for property taxes. 

■ Interest rate implicit in the lease: Not readily determinable. 

■ Incremental borrowing rate: 8%. 

■ Depreciation method: Straight-line. 

■ Year end: December 31. 

Required:

Prepare Archibald Industries’ journal entries for 2019 and January 1, 2020.