The Truth?

How do you deal with a child who lives in a make-believe world? Almost every answer to every question we pose to Evan is answered falsely. Instead of telling the truth he makes up some elaborate more interesting answer. So in essence he is always lying. I feel like all I ever say to him is "Evan, tell the truth." To which he replies "OK fine, here is what really happened..."

Here are the answers to the question "how was school today?" that I know are false:

1. There was a third grader bully on the play ground who was picking on me. (the kindergarten has a separate playground that no one else can use)
2. The first thing we did was go outside for recess. But you don't have to ask her about it because she only did it today. She probably won't on the fourth or fifth or first, second and third days.
3. I climbed up a small tree. The branches were high and then I got behind the leaves and Mrs. Zatko couldn't even see me to help me get down.
4. We had nachos and pizza for lunch and I ate so many nachos that I couldn't eat any pizza. (he goes half day and they don't eat lunch at school)
5. The snack was the hard gold fish that hurt your teeth. One kids tooth fell out.
6. Well everyone went up the elevator to the pool, but it was too far for me to go with my arm so I stayed at the nurse. (his school is one story and has no pool on the roof or elevator) This one he argued with me about!
7. My job is to water the plant (might be true) It needs gallons of water every day because it is a cactus and they can't live without lots of water (obviously something is wrong with that statement)

Any suggestions on how to address this or if we just stop calling it lying and hope he becomes an author?(All sweaty after football)