On January $1,2015$ Tencum ltd signed a $6-$year lease for machinery. The terms of the lease called for Tencum to make annual payments of sh$.500,000$ for $6$ years beginning at the end of the year. The machinery has an estimated economic life of $9$ years. At the end of the lease term Tencum has the right to buy the machinery for sh$.5,000.$ Tencum could have borrowed money from the bank to buy the machinery at $10\%$ p$.$a$.$ The lessor computed the annual rentals using an interest rate of $8\%$ p$.$a$.$

Required:

i$)$Prepare a lease amortization schedule.

ii$)$Show the journal entries to record the lease and the payment of the annual lease rentals.