Rudolf Corp. leases a warehouse from Prancer Corp on August 1, 2018 for 10 years. The agreement is non-cancellable and call for annual payments of $11,000 for years one through 5 (first payment on Aug 1) and $12,000 for years 6 through 10. There is no renewal option in the lease and both parties expect that after 10 years Rudolf will need to move to another location. The incremental borrowing rate for Rudolf is 8% per year.

1. Journal entry to record the lease by Rudolf on August 1, 2018.
2. Journal entry to record the lease by Prancer on August 1, 2018.
3. Journal entry to record the payment by Rudolf on August 1, 2018
4. Journal entry to record the receipt by Prancer on August 1, 2018
5. Journal entries to update the lease for two years for Rudolf.