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On January 1, 2018, Rick's Pawn Shop leased a truck from Chumley Motors for a seven-year period with an option to extend the lease for

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On January 1, 2018, Rick's Pawn Shop leased a truck from Chumley Motors for a seven-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 3-year extension option. Annual lease payments are $19.500 due on December 31 of each vear, calculated by the lessor using a 6% interest rate. The agreement is considered an operating lease. (EV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare Rick's journal entry to record for the right-of-use asset and lease liability at January 1, 2018. 2. Prepare the journal entries to record Interest and amortization at December 31, 2018, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Rick's journal entry to record for the right-of-use asset and lease liability at January 1, 2018. (If nio 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 On January 1, 2018, Rick's Pawn Shop leased a truck from Chumley Motors for a seven-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 3-year extension option. Annual lease payments are $19.500 due on December 31 of each vear, calculated by the lessor using a 6% interest rate. The agreement is considered an operating lease. (EV of $1. PV of $1. EVA of $1. PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare Rick's journal entry to record for the right-of-use asset and lease liability at January 1, 2018. 2. Prepare the journal entries to record Interest and amortization at December 31, 2018, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Rick's journal entry to record for the right-of-use asset and lease liability at January 1, 2018. (If nio 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

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