On January 1, 2021, Ricks Pawn Shop leased a truck from Corey Motors for a five-year period with an option to extend the lease for three years. Ricks had no significant economic incentive as of the beginning of the lease to exercise the 3-year extension option. Annual lease payments are $12,500 due on December 31 of each year, calculated by the lessor using a 5% interest rate. The agreement is considered an operating lease. Required: 1. Prepare Ricks 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.