5 On January 1,2018, Rick's Pawn Shop leased a truck from Chumley Motors for a six-year per three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $18,000 due on December 31 of each year, calculated by the lessor using a 4% at the beginning of the third year, January 1, 2020, Rick's had made significant improvements to t iod with an option to extend the lease for discount rate. Assume that "reasonably certain. The he truck whose cost could be es the extension option, creating an expectation that extension of the lease was relevant interest rate at that time was 5% Eyot S. Pyot. EVA ofS. P factor(s) from the tables provided.) A of SLEVAD of S1 and PVADOS) (Use appro 0222 Required: 1. Prepare the journal entry, if any, at the beginning of the third year for the lessee to account for the reassessment 2. Prepare the journal entry, if any, at the beginning of the third year for the lessor to account for the reassessment. Complete thi s question by entering your answers in the tabs below nt. (If no entry Prepare the journal entry, if any, at the beginning of the third year for the lessor to i required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) Journal entry worksheet Record the entry, if any, by the lessor to account for the reassessment. 5 On January 1,2018, Rick's Pawn Shop leased a truck from Chumley Motors for a six-year per three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $18,000 due on December 31 of each year, calculated by the lessor using a 4% at the beginning of the third year, January 1, 2020, Rick's had made significant improvements to t iod with an option to extend the lease for discount rate. Assume that "reasonably certain. The he truck whose cost could be es the extension option, creating an expectation that extension of the lease was relevant interest rate at that time was 5% Eyot S. Pyot. EVA ofS. P factor(s) from the tables provided.) A of SLEVAD of S1 and PVADOS) (Use appro 0222 Required: 1. Prepare the journal entry, if any, at the beginning of the third year for the lessee to account for the reassessment 2. Prepare the journal entry, if any, at the beginning of the third year for the lessor to account for the reassessment. Complete thi s question by entering your answers in the tabs below nt. (If no entry Prepare the journal entry, if any, at the beginning of the third year for the lessor to i required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) Journal entry worksheet Record the entry, if any, by the lessor to account for the reassessment