Problem 15-4 (Algo) Finance/sales-type lease; lessee and lessor [LO15-1, 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 $2,660,000 and leased it to Mid-South Urologists Group, Incorporated, on January 1, 2024. Note: Use tables, Excel, or a financial calculator. (EV of \$1, PV of \$1, EVA of \$1, PVA of \$1. EVAD of \$1 and PVAD of \$1) 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, 2024. 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 $2.3 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2024. Complete this question by entering your answers in the tabs below. How should this lease be classified by Mid-South Urologists Group and by Physiclans' Leasing? Journal entry worksheet 3 Journal entry worksheet Record the cash payment. Note: Enter debits before credits. Journal entry worksheet Prepare appropriate entries for Physicins' Leasing from the beginning of the lease through the second rental payme Adjusting entries are recorded at the end of each fiscal year (December 31). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Ente whole dollars rounded to the nearest dollar rather than in millions. Journal entry worksheet 23 Note: Enter debits before credits. Prepare appropriate entries for Physicians' Leasing from the beginning of the lease through the second rental payme Adjusting entries are recorded at the end of each fiscal year (December 31 ). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Ente whole dollars rounded to the nearest dollar rather than in millions. Journal entry worksheet Prepare appropriate entries for Physicians' Leasing from the beginning of the lease through the second rental paym Adjusting entries are recorded at the end of each fiscal year (December 31 ). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Ent whole dollars rounded to the nearest dollar rather than in millions. Journal entry worksheet