Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians Leasing purchased a lithotripter from Rand for $2,020,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018.

Lease Description:
Quarterly lease payments	$	131,821beginning 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		12%
Fair value of asset	$	2,020,000

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, 2018. 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 $1.7 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2018.

I need help understanding how I got these journal entries wrong and how to solve for the right answer

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 General Journal Credit No 1 Date January 01, 2018 Lease receivable | Equipment Debit 2,020,000 2,020,000 2 131,821 January 01, 2018 Cash Lease receivable 131,821 3 April 01, 2018 131,821 Cash Lease receivable Interest revenue 75,173 X 58,345 x Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.7 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 General Journal Credit No 1 Date January 01, 2018 Lease receivable Cost of goods sold Sales revenue Equipment Debit 2,020,000 1,700,000 2,020,000 1,700,000 131,821 January 01, 2018 Cash Lease receivable 131,821 3 April 01, 2018 131,821 Cash Lease receivable 75,173 X 56,648 Interest revenue