On January 1, 2019, Company Z enters into a lease agreement for office space with a lease term of 10 years and annual lease payments of $100,000, payable at the beginning of each year. The interest rate implicit in the lease is 6 percent. The office space has a fair value of $800,000.

Prepare the journal entries to record the lease at inception, the first lease payment, and the interest expense for the first year.