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. FVAD 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 $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 aneware in the take holow 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 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 A View transaction list Journal entry worksheet < 1 2 3 Record cash payment. Note: Enter debits before credits. Date April 01, 2021 Interest expense Lease payable Cash General Journal Debit Credit 63,735 71,769 135,504 Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 3 Record cash received. Note: Enter debits before credits, General Journal Debit Credit 135,504 63,735 Date April 01, 2021 Cash Interest revenue Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Required 3 Lessee Lessor ok nt Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the mach a cost of $1.9 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payn on April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) ences View transaction list Journal entry worksheet < 1 2 3 Record lease. Note: Enter debits before credits. Date General Journal Debit 2,260,000 Credit January 01, 2021 Lease receivable Cost of goods sold Equipment Sales revenue View general journal Clear entry Record entry Show I Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 2 Lessee Lessor Required 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. (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.) View transaction list Journal entry worksheet 2 3 Record cash received. Note: Enter debits before credits. Date January 01, 2021 General Journal Debit Credit Record entry Clear entry View general journal Show lessA Required 2 Required 1 Required 2 Lessee Lessor Required 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. (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.) es View transaction list Journal entry worksheet < 2 3 Record cash received. Note: Enter debits before credits. Date April 01, 2021 General Journal Debit Credit Record entry Clear entry View general journal Show less &