Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians Leasing purchased a lithotripter from Rand for $2.120,000 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.) $127,110-beginning of each period 5 years (20 quarters) Lease Description Quarterly lease payments Lease term No residual values no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset 5 years 8X $2,120,000 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 $1.8 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 Required) Lessee Lessor Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.8 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 whale dollars and not in the millions of dollars. Round your answers to bearest whole dollars) Shows X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Lessee Required 2 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 fiscal year (December 31). (If no entry in 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 dollars.) Show less NO Date General Journal Credit Dobit 2 120,000 1 January 01, 2021 Right of use asbo Lease payable 2 120,000 2 127 110 January 01, 2021 Lease payable Cash 127 110 3 April 01, 2021 Interest expense 39,858 Lease payable Cash DIS Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Lessee Required 2 Lesson Required 3 Prepare appropriate entries for 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). (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 dollars.) Show less Debit Credit General Journal No 1 Date January 01, 2021 Lease receivable 2 127 110 January 01, 2021 Cash Lons receivable 127, 110 3 April 01, 2021 Cash Lease recolvable Required 1 Required 2 Lessee Required 2 Lessor Required 3 Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produce a cost of $1.8 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second on April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fi answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) View transaction list Journal entry worksheet Record lease. Note: Enter debits before credits General Journal Debit Credit Date January 01, 2021