Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive pices due to volume buying. On September 30, 2024, the compony leased a delivery truck to a local fiorist, Anything Grows. - The fiscal year for both companies ends December 31. - The lease agreement specified quarterly payments of 53.800 beginning September 30,2024 , the beginning of the lease, and each quarter (December 31, March 31, and June 30) through June 30, 2027 (three-year lease term). - The florist had the option to purchase the truck on September 29, 2026, for $7,600 when it was expected to have a residual value of $12.400. - The estimated useful life of the truck is four years. - Mid-South Auto Leasing's quarterly interest rate for determining payments was 3% (approximately 12% annually). Mid-Souff paid $31720 for the truck. - Both companies use straight-tine depreciation or amortization. - Anything Grows' incremental interest rate is 12%. Hint A lease term ends for accounting purposes when an option becomes exercisable if its expected to be exercised (le, a BPO). Note: Use tables, Excel, or a financial calculator. (EY of 51, PY of 51, EYA of 51, PVA of 51, EVAD of 51 and PVAD of S1) Requiredt 1. Calculate the amount of selling profit that Mid-South would recognize in this sales type iease. (Be careful to note that, although poyments occur on the last calendar day of each quarter, since the first payment was at the beginning of the lease, payments represent an annulty due.) 2. Prepare the appropriate entries for Arything Grows and Mid-South on September 30, 2024. 3. Prepare an amortization schedulels) describing the pattem of interest expense for Anything Grows and interest revenue for MidSouth Auto Leasing over the lease term. 4. Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31,2024. 5. Prepare the appropriate entries for Anything Grows and Mid. South on September 29, 2026, assuming the purctiase option was exercised on that date. 1. Calculate the amount of selling profit that Mid-South would recognize in this sales-type lease, (Be careful to note that, although payments occur on the last calendar day of each quarter, since the first payment was at the beginning of the lease, payments represent an annuity due.) 2. Prepare the aporopilate entries for Anything Grows and Mid-South on September 30, 2024. 3. Prepare an amortization schedule(s) describing the pattern of interest expense for Anything Grows and interest revenue for Mid. South Auto Leasing over the lease term. 4. Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31, 2024. 5. Prepare the appropriate entries for Anything Grows and Mid-South on September 29, 2026, assuming the purchase option was exercised on that date. Complete this question by entering your answers in the tabs below. Cricifate the amount of selling profit thut Mid-South would recegnute in this sales-tvpe lease. (Be careful to note that, although parmints occur on the last calendar day of each quarter, since the first payment was at the beginning of the lease, puphents represent an annuity doe.) Noln: Mouna your intermediate and finat answers to nearest whole dollor
