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On January 1, 2021, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for

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On January 1, 2021, 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 3 year extension option. Annual lease payments are $13,000 due on December 31 of each year, calculated by the lessor using a 6% interest rate. The agreement is considered an operating lease. (FV of $1. PV of $1. EVA of $1. PVA of 1. FVAD OF S1 and PVAD of S1) (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, 2021 2. Prepare the journal entries to record interest and amortization at December 31, 2021, 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 ability at January 1, 2021. (Ir 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 1

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