Check my work mode : This shows what is correct or incorrect for the work you have compl Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians Leasing purchased a lithotripter from Rand for $1,590,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $.1) (Use appropriate factor(s) from the tables provided.) Lease Description: Quarterly lease payments $95,333-beginning of each period Lease term 5 years (20 quarters) No residual value; no purchase option Economie life of lithotripter 5 years Implicit interest rate and lessee's incremental B borrowing rate Fair value of asset $1,590,000 Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.4 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Lessee Lessor Required 3 How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Mid-South Urologists Group Physicians' Leasing Finance lease Sales-type lease 3 Required Required 2 Lessee) 1 $95, 333-beginning of each period 5 years (20 quarters) Quarterly lease payments Lease term No residual value; no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset 5 years 88 $1,590,000 Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.4 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 2 Lessee Lessor Required 3 Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) Show less No Date General Journal Debit Credit 1 January 01, 2021 Right-of-use asset Lease payable 1,890,000 O 1,090,0000 2 January 01, 2021 Loate payable Cash 95,333 95.333 3 April 01, 2021 interest expense Lease payable Cash O 96,3336 $95, 333-beginning of each period 5 years (20 quarters) Quarterly lease payments Lease term No residual value; no purchase option Economie life of lithotripter Implicit interest rate and lessee's increnental borrowing rate Fair value of asset 5 years 88 $1,590,000 Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.4 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Lessee Required 2 Lessor Required 3 Prepare appropriate entries for Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) Show less No General Journal Credit 1 Date January 01, 2021 Lease receivable Equipment Debit 1,590,000 1,590,000 2 January 01, 2021 Cash Lease receivable SON 95.333 95,333 3 April 01, 2021 95,333 Cash Lease receivable Interest revenue OOO $95,333-beginning of each period 5 years (20 quarters) Quarterly lease payments Lease term No residual value; no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset 5 years 88 $1,590,000 Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.4 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Lessee Lessor Required 3 Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.4 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) Show less No Date General Journal Debit Credit January 01, 2021 Lease receivable 1,590,000 Cost of goods sold 1.400.000 Sales revenue 1,590,000 Equipment 1,400,000 1 2 January 01, 2021 Cash Lease receivable OOOOOOOO 95,333 96,333 3 April 01, 2021 95,333 Cash Lease receivable Interest revenue