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Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physiclans ed a lithotripter from Rand for $2,300,000 and leased

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Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physiclans ed a lithotripter from Rand for $2,300,000 and leased it to Mid-South Urologists Group, Inc, on January 1, 2018.(FV of S1, PV of S1. FVA of S1, PVA of S1, FVAD of $1 and PVAD of $3) (Use appropriate factor(s) from the Quarterly lease payments Lease term No residual value; no purchase option Economic life of lithotripter Implicit $150,093-beginning of each period 5 years (20 quarters) interest rate and lessee's incremental borrowing 5 years rate Fair value of asset $2,300,000 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 recorced 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 e at a cost of $20 milion. Prepare appropriate entries for Rand Medical fiom 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. Required 1 Required 2 Required 2 Requ'red 3 Lessce Lessor 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 no entry is required for a transaction/event, select No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of doliars. Round your answers to nearest whole dollars

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