Question: On January 1 , 2 0 2 3 , Archibald Industries entered into an agreement to lease office space for a five - year period.

On January 1,2023, Archibald Industries entered into an agreement to lease office space for a five- year period. Details of the lease are:
1. Payments $55,000 per annum first due at the commencement date.
2. Payment includes:$50,000 for office rental and $5,000 for property taxes.
3. Interest rate implicit in the lease: Not readily determinable.
4. Incremental borrowing rate:8%.
5. Depreciation method:straight-line.
6. Year end:December 31.
Required: Prepare Archibald Industries' journal entries for 2023 and January 1,2024.

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