Required:

Prepare Rick's journal entry to record for the right$-$of$-$use asset and lease liability 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 the journal entries to record interest and amortization on December $31,2024.$

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.

Journal entry worksheet

Record the lease payment for Rick's.

Noter Enter debits before credits.On January $1,2024,$ Rick's Pawn Shop leased a truck from Corey Motors for a five$-$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 $$18,500$ due on December $31$ of each year, calculated by the lessor using a $7\%$ interest rate. The

agreement is considered an operating lease.

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

Required:

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

Journal entry worksheet

Record the beginning of the lease for Rick's.

Note: Inter debits before credits.