Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying. On September 30, 2024, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,550 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 $7,100 when it was expected to have a residual value of $11,650. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 2% (approximately 8% annually). Mid-South paid $29,620 for the truck. Both companies use straight-line depreciation or amortization. Anything Grows' incremental interest rate is 8%. . Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (i.e., a BPO). 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: 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 appropriate 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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.) Note: Round your intermediate and final answers to nearest whole dollar. Selling profit < Required 1 Required 2 > Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying. On September 30, 2024, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,550 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 $7,100 when it was expected to have a residual value of $11,650 The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 25% (approximately 8% annually). Mid-South paid $29,620 for the truck. Both companies use straight-line depreciation or amortization. Anything Grows' Incremental Interest rate is 8% Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (e., & BPO). 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: 1. Calculate the amount of selling profit that Mid-South would recognize in this sales-type lesse. (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 appropriate 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 Lessing 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the appropriate entries for Anything Grows and Mid-South on September 30, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your Intermediate and final answers to nearest whole dollar. No 1 Date September 30, 2012 Right-of-use asset Lease payable 2 September 30, 2012 Lease payable Cash 3 September 30, 2012 Lease receivable Cost of goods sold Sales revenue Equipment General Journal 0000 4 September 30, 202 Cash Lease receivable < Required 1 Required 3 > Debit Credit 3,550 3.500 3,550 3,550 Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying. On September 30, 2024, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,550 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 $7,100 when it was expected to have a residual value of $11,650 The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 25% (approximately 8% annually). Mid-South paid $29,620 for the truck. Both companies use straight-line depreciation or amortization. Anything Grows' Incremental Interest rate is 8% Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (e., & BPO). 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: 1. Calculate the amount of selling profit that Mid-South would recognize in this sales-type lesse. (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 appropriate 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 Lessing 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Lease Amortization Schedule Date 9/30/24 9/30/24 12/31/24 Payments $ 3,550 $ 3,560 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 Effective Interect Decrease In Balance Outstanding Balance 6/30/26 9/29/20 7,100 $ 0 3,550 3,560 < Required 2 Required 4 > Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying. On September 30, 2024, the company leased a delivery truck to a local florist, Anything Grows. The fiscal year for both companies ends December 31. The lease agreement specified quarterly payments of $3,550 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 $7,100 when it was expected to have a residual value of $11,650. . The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 2% (approximately 8% annually). Mid-South paid $29,620 for the truck. Bath companies use straight-line depreciation or amortization. . Anything Grows' Incremental Interest rate is 8% Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (e., a BPO). 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: 1. Calculate the amount of selling profit that Mid-South would recognize in this sales-type lesse. (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 appropriate 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 Lessing 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 clate Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your Intermediate and final answers to nearest whole dollar. No 1 2 Date December 31, 202 Amortization expense Right-of-use asset December 31, 2012 Interest expense Lease payable Cash General Journal Debit Credit 0 3 December 31, 2012 Cash Lease receivable Interest revenue 000 < Required 3 Required 6 > Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying. On September 30, 2024, the company leased a delivery truck to a local florist, Anything Grows The fiscal year for both companies ends December 31. . The lease agreement specified quarterly payments of $3,550 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 $7,100 when it was expected to have a residual value of $11,650. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments was 25% (approximately 8% annually). Mid-South paid $29,620 for the truck. Bath companies use straight-line depreciation or amortization. Anything Grows' Incremental Interest rate is 8% Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (e., & BPO). 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: 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 appropriate 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 Lessing 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the appropriate entries for Anything Grows and Mid-South on September 29, 2026, assuming the purchase option was exercised on that date. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your Intermediate and final answers to nearest whole dollar. Show less No Date General Journal Debit Credit 1 September 29, 202 Amortization expense Right-of-use asset 2 3 September 29, 202 Interest expense Lease payable Cash September 29, 2012 Cash 000 000 Lasse receivable Interest revenue < Required 4 Required 6 >