Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones, Physicians Leasing purchased a lithotripter from Rand for $2,150,000 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 5) (Use appropriate factor(s) from the tables provided.) Lease Description: Quarterly lease payments Lease term $152,116-beginning of each period 5 years (20 quarters) No residual value; no purchase option Economic life of lithotripter 5 years Implicit interest rate and lessee's incremental borrowing rate 16% Fair value of asset $2,150,000 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 2 Required 1 Required 2 Lessor Required 3 Lessee How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Finance lease Mid-South Urologists Group Physicians' Leasing Sales-type lease Required 2 Lessee > < Requind 1 Complete this question by entering your answers in the tabs below. Required 2 Required 2 Required 1 Required 3 Lessee Lessor 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 es View transaction list WHILE CHALL X 1 Record lease. 2 Record cash payment. 3 Record cash payment. Note: - journal entry has been entered Record entry Clear entry Renuired 1 Credit View general journal Required 21 Complete this question by entering your answers in the tabs below. Required 2 Required 2 Required 1 Required 3 Lessee Lessor 1 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.) ok 5 Show less A ences View transaction list EXI 1 Record lease. 2 Record cash received. 3 Record cash received. Note: = journal entry has been entered Record entry Clear entry < Required 2 Lessee Credit View general journal Required 3 > Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 2 Lessee Required 3 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 whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.) Show less A View transaction list X 1 Record lease. 2 Record cash received. 3 Record cash received. Note: Next > - Journal entry has been entered Record entry Clear entry < Required 2 Lessor TH Credit View general journal < Prev 9 of 10