Problem 15-4 (Algo) Finance/sales-type lease; lessee and lessor (L015-1, 15-2, 15-3] Rand Medical manufactures lithotripters, Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians Leasing purchased a lithotripter from Rand for $2,620,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021 (EV. of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Dance Quarterly lose payments $131,021-beginning of each period ose term 5 (20 quarters) Moronidual value no purchase option conomie uite of thotripter Syo Implieit interest rate and less incremental borrowing rate Yair value of annat $2,020,000 120 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 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.7 milion. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021 Complete this question by entering your answers in the tabs below. Required Required 2 Lesses Required 2 Lessor Required How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing Che E MUITO IMAMUUUUGUUUUE VIVUYO DIVU, Hy LVL $1. PV of S1, FVA of $1. PVA of $1. EVAD of $1 and PVAD of $0 (Use appropriate factor(s) from the tables provided.) Lapton Quarterly lane payments 5231,621-beginning of each period Les tec -5 years (20 urtere) Ho residual value to purchase option Economic life of thotriptor 5 year Tmplicit interest rate and l'incremental borrowing 120 rate Fair value of not $2,020,000 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, Rond Medical, which produced the machine at a cost of $17 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second Jease payment on April 1, 2021 Complete this question by entering your answers in the tabs below. Required 2 Required 2 Required 1 Lessee Lissor Required How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Mid-South Urologists Group Physicians' Leasing Paul Required 2 Lessee > 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 $17 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Lassee 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 flscal year (December 31). (If no entry is required for a transaction/event select "No foumal entry required in the first account held Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars) View transaction list Journal entry worksheet
