On January 1, 2018, Johns Shop leased a truck from Madix Motors for a six-year period. The useful life of the truck is 9 yrs. Annual lease payments are $10,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate Assume that at the end of the second year, January 1, 2020, John's and Madix Motors had agreed to extend the lease term by three years. The relevant interest rate at that time was 6%. The truck price was $70,000

Prepare the journal entry, if any, at the end of the second year for the lessee to account for the modification.

Prepare the journal entry, if any, at the end of the second year for the lessor to account for the modification.