Problem 15-4 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 $2,710,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018. (EV of S1. PV of S1. EVA of $1, PVA of S1. FVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Lease Descriptions Quarterly lease payments Lease term No residual value: no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing $191,737-beginning of each period 5 years (20 quarters) 5 years rate Fair value of asset $2,710,000 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, 2018. 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, 2018. Complete this question by entering your answers in the tabs below. pument onlD2OI6. Adusting entries are recoraeu at tie eria or eac 3. Assume Mid-South Urologists Group leased machine at a cost of $2.3 million. Prepare appropriate entries for Rand Medical from the beg lease payment on April 1, 2018 the lithotripter directly from the manufacturer Complete this question by entering your answers in the tabs below. Required 2 Lessee Required 2 Lessor Required 3 How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Mid-South Urologists Group Physicians' Leasing Required 1 Required 2 Lessee View transaction list Journal entry worksheet 2 Record lease Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 View general journal Clear entry Record entry View transaction list Journal entry worksheet Record cash payment. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 View general journal Record entry Clear entry View transaction list Journal entry worksheet 2 Record cash payment. Note: Enter debits before credits. Credit General Journal April 01, 2018 View general journal Clear entry Record entry Journal entry worksheet 2 Record lease. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Record entry View general journal Clear entry Required 1Required 2 Required 2quired 3 Lessor Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginni second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year (De required for a transaction/event, select "No journal entry required" in the first account field. Enter your a in the millions of dollars. Round your answers to nearest whole dollars.) View transaction list Journal entry worksheet Record cash received. one Note: Enter debits before credits. Debit Credit Date General Journal January 01, 2018 Required 2 Required 2 Required 1 Lessee Lessor Required 3 Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beg second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year required for a transaction/event, select "No journal entry required" in the first account field. Enter yo in the millions of dollars. Round your answers to nearest whole dollars.) View transaction list Journal entry worksheet Record cash received. Note: Enter debits before credits. Date General Journal Debit Credit April 01, 2018 Required 2 Lessor Required 3 Required 1 1 Lessee Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medic a cost of $2.3 million. Prepare appropriate entries for Rand Medical from the beginning of the lease thr on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in t answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollar View transaction list Journal entry worksheet Record lease. Note: Enter debits before credits. Credit Debit Date General Journal January 01, 2018 Required 1Required 2 Required 2 Required Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medic a cost of $2.3 million. Prepare appropriate entries for Rand Medical from the beginning of the lease thr on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in t answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollar View transaction list Journal entry worksheet 3 Record cash received. Note: Enter debits before credits. Credit Debit General Journal Date January 01 2018 Required 1 Required 2 Required 2 LessoRequired 3 Lessee Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, whic a cost of $2.3 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through th on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) View transaction list Journal entry worksheet 2 Record cash received. Note: Enter debits before credits. Debit Credit General Journal Date April 01, 2018