Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians' Leasing purchased a lithotripter from Rand for $2,420,000 and leased it to Mid-South Urologists Group, Incorporated, on January 1, 2024. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Lease Description: Quarterly lease payments Lease term No residual value%;B no purchase option Economic life of lithotripter $ 171,219-beginning of each period 5 years (20 quarters) 5 years 16% Implicit interest rate and lessee's incremental borrowing rate $ 2,420,000 Fair value of asset 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, 2024. 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 $2.1 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2024. 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 How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? Mid-South Urologists Group Physicians' Leasing Operating lease Finance lease Required 1 Required 2 Lessee > Required 2 Lessor Answer is not complete. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 2 Lessee Required 3 Lessor Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2024. Adjusting entries are recorded at the end of each fiscal year (December 31). Note: 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 rounded to the nearest dollar rather than in millions. No Date General Journal 1 January 01, 2024 Lease receivable Equipment 2 January 01, 2024 Cash Lease receivable Debit Credit 2,420,000 2,420,000 3 April 01, 2024 Cash Interest revenue Lease receivable < Required 1 Required 2 Lessor > 171,219 171,219 171,219 89,951 X 81,268 X Show less 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 Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2024. Adjusting entries are recorded at the end of each fiscal year (December 31). Note: 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 rounded to the nearest dollar rather than in millions. No Date General Journal 1 January 01, 2024 Right-of-use asset Lease payable 2 January 01, 2024 Lease payable Cash 3 April 01, 2024 Lease payable Interest expense Cash Debit 2,420,000 Credit 2,420,000 171,219 171,219 81,268 89,951 171,219 x < Required 2 Lessee Required 3 > Show less 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 Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $2.1 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2024. Note: 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 rounded to the nearest dollar rather than in millions. No 1 Date January 01, 2024 Lease receivable Sales revenue 2 January 01, 2024 Cash Lease receivable 3 April 01, 2024 Cash Interest revenue Lease receivable General Journal Debit Credit 2,420,000 2,420,000 171,219 171,219 171,219 81,268 X 89,951 X Required 2 Lessor Required 3 Show less