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Rand Medical Manufacturers

Rand Medical manufactures lithotripters. Lithotripsy uses shock waves Instead of surgery to eliminate kidney stones. Physicians Leasing purchased a lithotripter from Rand for $1,720.000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV 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 $183,127-beginning of each period Lease term 5 years (2e quarters) No residual value; no purchase option Economic life of lithotripter 5 years Implicit interest rate and lessee's incremental borrowing rate 86 Fair value of asset $1,720,000 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 $1.5 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 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 Required 1 Required 2 Lessee > 12 Journal entry worksheet 1 2 3 Record lesse. Note: Enter des balore credits Date General Journal January 01, 2021 Debet Credit Mecord entry Clear entry Vegeljournal Journal entry worksheet Record cash received Note: Eids bafore credits Date January 01, 2021 General Journal Debat Credit Mecord entry Clear entry Vegeljournal Journal entry worksheet 1 2 Record cash received Note: Enterdits balore credits Date April 01, 2021 General Journal Debit Credit Hecord entry Clearly Vegeljournal Journal entry worksheet 2 3 1 Record Lease Note: Eids bafore credits Date January 01, 2021 General Journal Dabit Credit Hecord entry Clear entry Vwwglournal Journal entry worksheet 1 2 3 Record cash received Note: En das before credits Date April 01, 2021 General Journal Debit Credit Mecord entry Clearly Vw general Journal entry worksheet 1 2 3 Record cash received Nota: En dit before ads. Date January 01, 2001 General Journal Debit Credit Hacord entry Clwtry View generale

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