Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to emilinate kidney stones. Physicians leasing purchased a lithotripter from Rand for $2,730,000 and leased it to Mid-South Urologist Group, Inc., on January 1,2021.

2. Prepare appropiate entries for both Mid-South Urologist 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)

RECORD LEESE

-record lease on January 01,2021- record cash payment January 01,2021- record cash payment April 01,2021

RECORD LESSOR

record lease January 01,2021- record cash recieved January 01,2021- record cash recieved April 01,2021

3. assume Mid-South Urologist Group leased the lithotripter directly front the manufacturer, Rand Medical, which produced the machine at as coat of $2.3 million. Prepare appropiate entries for Rand

Medical from the beginning of the lease through the second lease payment on April 1,2021.

record leasw Janauary 01,2021- recoed cash recieved January 01,2021- record cash recieved April 01,2021

$193, 152-beginning of each period 5 years (20 quarters) Lease Description: Quarterly lease payments tease term No residual value; no purchase option Economic life of lithotripter Implicit interest rate and lessee's incremental borrowing rate Fair value of asset 5 years 169 $2,730,000 LLO 2009 CORTS HEREN ELS TECH 6 SES COO66 FOOT 90539 TOT CORRET LENE ZEE CHEROKEE WEET DOCEL HS SEB IK ZER OCH PORT ELIT ES DIE SOFT SCI 0 POOLI FOT BOXES ESET HOEVEEPEELGOE MESE 1909 1 Cost CHELSE CHOOL THE SON SEK HOT DHZ FOSZ LEE COOL WALLISIST OLI SEEI 12 6.888 4600312 41458 8101 PLOCE 0950 SE OSVETLIFE 61 TONI CETAT EL GIOCO Sesot SSZ FE 59001Z OSTET ICT 5051 TRT SET 1180C 61 103 HS OUSIC 31653 DOITE ENE 1997 IET OSLO HERE II CASES HOS ES 471713 COCE 99000 3.70002 11 119615 110734 145 155906 17030165749 202582230548 2002 2.691 17 1160 1.250 140004 1.52167 16528 17948 194790 2.11336329202 2.48180 16 11725 12699 1372 145451 160471 173399 187296 2.09237 2.1827215526 3.1 2.5434 2.9277 2.54035 . TELEE 18 611019 14259 2.95210 1.64 FUSCE TE BOZ SEST TO COVOPF GEREI 2.19656 2009 1117 RE DSZET CESTE DET 61266 29642 ERO EREDE ZETT 15 16097 1.2500313457 1443303797 167535 14 1149471231161.31945 141297151259 1 61169 17316513194 19799) 111009 13 113009 121355 1.29961 137851 153 156196 1 66507 77330 1.5 2.00577 12 11363 1.19562 2634 1.341 142576 151107 1.60109 169535 1.7955 110121 11 111567 117795 1.24337 1.31209 135423 145997 1.59945167385 1.7104 11030 15783 24095 225219 2.10485 ONSOLE 99CINE LORE 1916 SHAPE LISTE Octor 2.51617 213164 OCHT NO 21592 10 110462 116054 121899 1 2008 1.3492141000 148024 155297 169889 70814 19715 1 1846 CHE POESSE DE CE 179085 1 5.11 10585 2.59374 236736 2179 1256210 1941 1011021100 10304 FAST 1.WO LESON 171819 1.60578 141852 1.500 CRAFT ESTOST 60610 TS! ONYI IRECT DE LLEI 60561 60 600 6 COHEST PURT OTO 1961 VIEL LL996 I OMIT WILL HELINO 19151 101 980011 65CT NUT EI 81 I GOT 1860 MILLOIL PROLET TOI FI I 61 Sow61 691 VIACI ME EST 9 ERIT 1985 MAST REZ 167210 177154 8741 1.40255 ERET LS 1.57353 1.61051 146410 LSID 1 SM 141156 2010 1.46 1.36019 1.25971 1.36246 ORICT FORCEI GROET LET 19 I SOCI GOBI LEASIL IMITI SONO HUO TOLOS 2 ISSIT 256 OTT ISHT ISSIT 1880 190 00010 ALPE1 DIGTE 1.33100 121000 CORTI COSECI ORE 0001 1340 117000 011 114490 101000 3 10010 1015611.00121 107689 109273 110872 112486 1.14117 11576) 1934 2162010 101022 104040 105069 10600 107121 10110 109303 10350 111101 0001 COLI Suur 00011 WI 16.000 3.04 112160 166000 8.01 SWEE 14. son COSSO 1 00050 1 OOSIO 1 00019 I DOSTO 100000 1 DOSCO I CO DOSTO 1 00010 1 1 NS NS SEE 40 WE NOT NT 7.04 KOS 1.54 FV-51(1+ TAULE 1 Future Value of $1 ABLE 2 Present Value of $1 PV- (1+) TS 3.01 3.59 4.09 6.01 7.09 L05 10.04 WOT ST WE was NOTE KIROPR60 0600D COO CHIGO OSTEOSES O160 W S60 S60 ST90 1996 ROZ6 195/60 60360 TTS16 010660 GILLO 091180930 BIO RESTO MERO 000680 360 OC060 5160 9560 151660 096 1BISCO 21190 POLSO C0060 12.09 20.046 3097059 095639 094232 0.92860 091514 090194 01100 017630 016354 035161 03.1967 081630 0.79383 71 973131 0.73119 071175 057570 4 0.6 0313 0.92385 0.90595 085519 0.87144 0.35480023858 082220 0.80722 0.79309 016390 071503 070549 0.58301 45873 063552 042225 3 0.95147 092826 090573 08385 0301 084197 0.82195 0.10345 0.78333 07651014716 0.71299 066058 064293 063092 9545 0.5610 40103 6 0.94205 0.91454 0.38797 0.167.80 0.81748 0.1360 2.79031 6.78790 0.74611 0.72525 0.70496 0.66 0.45017 0.59677 2.560 0.33464 OM 0.13490 7 093272 090103 0.37056 054127 0.81309 0.7659 0.75992 0.750 0.71006 065744 0.60506 067275 0.38349 054703 051316 0.40166 0.4235 021908 3 092348 08771 0859 012075 0.78841 0.75941 0.750 0.20319 0.6764 065160 06041058201054077 OSOIT 040451 0333914013601251 90.91454 082459 051076 0.10073 0.76643 073173 070299 067290 0.61461 061763099190054193 0.50035 046043 0.03410 1909 0.01 19:01 10 0.90529 006167 0.82035 078120 0.74409 0.70892 0.67556 014393 0.61991 0.5854) 055839 0.035 0.46319 042341 038554 05318 0.32197 016151 11.933 0.84893 18426 0.76214 0.72340 0.48495 0.64958 0.616.0 4.55465 0.45491 0.52679 0.47500 0.4 0.375 0.30 0.31728 148 8.13459 12 0.17 053639 QJES9 0.1 0.70132 0.6617 0.640 a $8966 053614 0.5259 4.7 0.4401 0.71 0.35553 03136) 0.3 0.25668 0.11216 13 07866 069403 0.77301 072543 060095 0.63940 060057 056477 03303204956 046614 0.14 0.38770 011 0.2166 25751 12917 0.09541 14 03 031183 075788 0.70773 0.66112 0.61778 0.577180.53997 0.50507 0.47257040230 03878204046 0935 026333 33199 00 OTTE 15 36135 9 0 14301 69047 06418659689 0.55536 0.51672043101 04791 041727 0.16345 0.15 021454 023919 16.06431 16 035281 0.78803 9.71545 0.67361 0.09311 657671 0.33391 049447 0.45311 041458 15 033873 3915 0.25157 1.14111 540 17 0.5443 077619 071416 065720 00502 55720 051337 047311 0.4160040145 017116 31657 027077 023101 017754 16 01454 450 2000 Foro RS 9810 SITO SOSTO DISCO ROSE 20 ESSIO OSSO DO ESO ES 90 910010 16190 3005803 in C MED TOLEO ISOKE STOLOCO CO TO Storso Go SS790 9000 ASCO MESO 20 051954 07047 007297 001021 055368 050257 0:45659 041461 076 017031180 095841 021455 017841 014104 T3201 0907 2008 ISO scre BD o ISITIT TE MALE DIYOS SA ROSTLO DEO I 10. 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NO 1661 OSE CORRECTES I GUSTUS HOOTE 14.8404 35.9964 LIS BOOST 104.306 16 17.4304 1. 2014 19.011119.8667 30.1616 31.050 12.4975 GZITE C COPES 0666 06LEDE 32.7503 304502 40.4463 LELEY 10 OP 25.1417 35 3551 2006 0714 21 0645 616 519266W 103EIZ CO 1861 911 LL 1992 T011 091623 Os 10 EL GOIKOT TALESE SEITE 60 61 LOSO PETE 06ES63 0990 THE TESSE LEOTIC HELE 1986 13 1600 357856 S566 OLET STIO 1000 CHESS Os 710334 CONLIST DESET SCOPE SE) ESET 6+ 20122392 23.4705347833 26.533376765 265 109092 KAFET LSDOET TO LEOPOL TEE 0995 ES SERE SEE SECTETTE Y LESTE ILE IL TELFOFOSFELLOSE SOLZE C150CSERE NEWS 61 000 000 LEI HOLL OG 35.3034 37.50 370.0307 46 5700 50 1115 31564 67 6785 40 10 10.9901493319 1603723 10 83 101 10100122 3459345371091343022241357 40473 SS 01 6100690576 77663371095 TL 467 168 1441189 1610477 211.0 179.7510 082 458 459 144 14 s09 PIPE TABLE 6 Present Value of an Annuity Due of $1 (110 PVAD = U ++) IN NOT 1016 3.845 4546 Hoy 1.545 1.00000 20% 100000 4.046 1.00000 1 1.00000 NO NIT Som *1082 00000 100000 100000 100000 1 1.00000 1.99010 5.01 864 100000 1.000.00 1987 000001 19961 NOL 108 00000000001 SSG1 COSEET 000001 oms 9.09 1.00000 19170 2 60361 1.98522 2.95588 1.54 1.00000 1.91561 2.92742 385602 4.76197 BOLET CHIGZ 100000 195014 2.07267 3.796 190909 1900 189286 111 2.73554 2.71253 2.00 2.52778 3 STH67 25462 190154 2009 201009 310161 377509 467305 OROLET GON BEST IHRT SELLE FKLG SISOS SISSES 4 OEZIST 3.67301 3.57710 GUEST 31261 471710 ZERO TER PRO NOTES O O O $ BOSE ELLOS 04620 446511 CREIE LE NES pers 8.37971 6.41719 11216 5.9173 5.10070 5.76654 6.79548 509719 DINO 6.01509 GREE . 7591 5.71346 5.4583 6.60143 6.5081) 747199 7.34999 32545 17014 916334 037 LOGO 678657 6.32855 731454 700703 7795 7.73714 3.60700 1453 SELTS ES5665 BEEN 69 ISME ACO GEE ION NOTEE 696101 TIET ILLOT TONIO ISTE THIS HET GES COCO SHOP BERS OF THE PILEPSIDE 6000 SOLES COSEL SACO 1160 1651 GES ICE CUIT SONG 63454 10 06 SEE 7.71000 11 10.4713010.11118 9825 9.75305 8.91373 177173 121116761107112 10 705 10:31411035263 10.00155 18048 0641 13 1330 11 0751139554 11 35778 10.95406 106631) 10 307 10.11556 981 14 13.1314 1317313 114 11.9115 116 11.1024 1098585 100 105 10.11701 BICOLE co 35 36 SCO 1991CS re ELSE COM CONG SEO SCORE 6 56 COT SPOT FI 1911 SOCE 1 LOT TO SET 3051 OLEOS CACHE SES LASTCO Lors te PAS VOLE SL E EL TESTERERE LIPSE CITIES CHES SIT . test A TEE 16 16 14.3333 13.54936 13.313 110379412.51741 12.11 11.795 136 137 1071221 18.10791 17 15.71 1515136 H457771405500 1156110 1309121265330122540311117 1146716 11 1050 1044345 18 18 4035 159076515291873713301416611 13 13 13.16567 12 70719 1107 111011 1147736 10 3 10.1110 1917 19 18.6256 13 15 35336 1475351 11 11 6590 13 15 12.8999 12.347 11 10.37119 201813001 1740 3667545 I 151710 1704 14133413.5029 130 131 112 11335601060300 10561 OD CHIC SETT SI TI SE POT EST LLEST TEST VISELT VS IL 101 SITIOSOLISTICS EST LE S1661 THERE s 1905 177 17.019 1614101 153300 H50121127167 121541 310 11 12 46 3160 30 36458 9190051133034 1030 20 541119226 1794 16 15 13 12 11 10 9