On January 1, 2024, 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 three-year extension option. Annual lease payments are $10,000 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 Rick’s journal entry to record for the right-of-use asset and lease liability on January 1, 2024.
2. Prepare the journal entries to record interest and amortization on December 31, 2024.