Ballan Ltd entered into a non-cancellable lease agreement with Manufacturer Ltd to lease construction equipment from Manufacturer Ltd under the following terms:

Lease term ...................................................................................................9 years

Useful life of leased asset .......................................................................11 years

Expected residual value at end of lease ..................................................$6,000

Lease payment at inception (beginning) ..................................................$7,000

Lease payments (at end of each year) $5,000 per annum ............(9 payments)

Implicit interest rate for lease .......................................................................11%

Fair Value of Equipment ..............................................................................$37,031

Present Value of minimum lease payments ..............................................$34,685

Ballan does not intend to acquire the asset at the end of the lease term. What is the journal entry to record the first lease payment at the inception of the lease (rounded to the nearest dollar) in accordance with the requirements of AASB 16 Leases?