1. An Islamic bank provides a financing facility based on Murabaha financing to buy a specific equipment. The financing amounted to $ 75,000 at a constant rate of return of 6% for a period of 3 years. The annual installment payment is $29,500.

1. Prepare an extract of the balance sheet showing the net receivable and the murabahah income as an extract of the income statement for the whole period of financing. (4 marks)
2. Prepare the journal entries for the bank for the whole transaction. (7 marks)