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 MidSouth Urologists Group, Inc_, on January 1, 2018. [FV of Lease Description: Quarterly lease payments $135,504beginning of each period Lease term 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 Fair value of asset $2,260,000 8% Required: 1. How should this lease be classied by MidSouth Urologists Group and by Physiciansr Leasing? 2. Prepare appropriate entries for both MidSouth 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 scal 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, 2018. Complete this question by entering your answers in the tabs below. . Required 2 Required 2 . Requtred 1 Lessee Lessor Requtred 3 HowI should this lease be classied by Mid- South Urologists Group and by Physiciansr Leasing? Mid-South Urologists Group Physicians' Leasing Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Lessee Lessor Required 3 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 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 lessA View transaction list X 1 Record lease. 2 Record cash received. 3 Record cash received. Credit Note : = journal entry has been entered Record entry Clear entry View general journalComplete this question by entering your answers in the tabs below. Required 1 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, 2018. (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. Credit Note : = journal entry has been entered Record entry Clear entry View general journalComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 2 Lessee Lessor Required 3 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 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 View transaction list X 1 Record lease. > 2 Record cash payment. 3 Record cash payment. Credit Note : = journal entry has been entered Record entry Clear entry View general journal
