$3.$ Lessee Company enters into a $4-$year finance lease of nonspecialized manufacturing equipment with Lessor Company on January $1.$ Lessee Company has agreed to pay $$37,000$ annually beginning immediately on January $1.$ The economic life of the asset is $4$ years. The lessee$$s incremental borrowing rate is $5\%$ and the lessor$$s implicit rate is not readily determinable by the lessee.

Prepare the entries for Lessee Company for Year $1.$