On January $1,2024,$ Rick$$s Pawn Shop leased a truck from Corey Motors for a seven$-$year period with an option to extend the lease for three years. Rick$$s had no significant economic incentive as of the beginning of the lease to exercise the three$-$year extension option. Annual lease payments are $$18,000$ due on December $31$ of each year, calculated by the lessor using a $4\%$ interest rate. The agreement is considered an operating lease.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$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 $31,2024.$