Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $2,260,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV 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.) Lease Description Quarterly lease payments Lease term No residual value: no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $135, 504-beginning of each period 5 years (20 quarters) 5 years 8% $2,260.000 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. Rand Medical, which produced the machine at a cost of $19 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 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 2 Lessee > Check Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones Physicians Leasing purchased a lithotripter from Rand for $2,260,000 and leased it to Mid-South Urologists Group, Inc. on January 1, 2021 (EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD. of $1) (Use appropriate factor(s) from the tables provided.) Leate Description Quarterly lease paynents Leate tern No residual value no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset $135,504-beginning of each period 5 years (20 quarters) 5 years 8 $2.260.000 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, Rand Medical, which produced the machine at a cost of $1.9 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 Lessee Required 2 Lesson Required a Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer Rand Medical which produced the machine at a cost of $1.9 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2021. (if 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 dollars. Round your answers to nearest Whole dolande) Show less View transaction list Journal entry worksheet
