Exerclse $15-23($Algo$)$ Lessee; renewal optlons $[$L$015-2,15-6]$

$0\mathrm{.}71$ points eBOOK

References

On January $1,2024,$ RIck's Pawn Shop leased a truck from Corey Motors for a six$-$year period with an option to extend the lease for three years. Rick's had no significant economic incentive as of the beginning of the lease to exercise the three$-$year extension option. Annual lease payments are $$11,000$ due on December $31$ of each year, calculated by the lessor using a $5\%$ interest rate. The agreement is considered an operating lease.

Note: Use tables, Excel, or a financlal calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Prepare RIck's Journal entry to record for the right$-$of$-$use asset and lease llability on January $1,2024.$

Prepare the Journal entries to record interest and amortization on December $31,2024.$

Complete this question by entering your answers in the tabs below.

Prepare Rick's journal entry to record for the right$-$of$-$use asset and lease liability on January $1,2024.$

Note: 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.

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,$January $01,2024,$Right$-$of$-$use asset,,$],[,,$Lease payable,,$]]$

Raguined $1$