Jana Kingston Corporation enters into a lease on January 1, 2008, that does not transfer owner- ship or contain a bargain purchase option. It covers 3 years of the equipment's 8-year useful life, and the present value of the minimum lease payments is less than 90% of the fair market value of the asset leased. Prepare Jana Kingston's journal entry to record its January 1, 2008, annual lease payment of $37,500.