Chapter 15 - Homework Served 15 On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a seven-year period with an option extend the lease for 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% interest rate. The agreement is considered an operating lease. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 0.65 points Skipped Required: 1. Prepare Rick's journal entry to record for the right-of-use asset and lease liability at January 1, 2021. 2. Prepare the journal entries to record interest and amortization at December 31, 2021. eBook Complete this question by entering your answers in the tabs below. Required 1 Required 2 References Prepare Rick's journal entry to record for the right-of-use asset and lease liability at January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Record the beginning of the lease for Rick's. Note: Enter debits before credits General Journal Debit Credit Date January 01, 2021 Record entry Clear entry View general Journal