An Islamic financial institution provides a financing of $100,000 at a constant rate of return of 10% for a period of 5 years and requires an annual installment payment of $30,000 Prepare an extract of the Balance Sheet and income statement at the beginning and end of Year 1 Workings Uneared income (5x30,000) - 100,000 - RM 50,000 Balance sheet Murabaha financing Unearned income Net receivable Income statement Murabaha Income Year 0 150,000 (50,000) 100,000 Year 1 120,000 (40,000) 80,000 10,000 Working : Income = 10% of RM100,000 per year. Question: Using the information given below prepare an extract of the Balance Sheet and income statement at the beginning and end of Year 1 for the Islamic Bank. 4 An Islamic Bank provides a Murabaha to the Purchase Orderer financing to Barakah Construction to purchase a specialized equipment to be used for Barakah Construction's business project. Financing is for USS 500,000 at a constant rate of return of 10% for a period of 5 years. The annual installment payment is USS 150,000. Note: Suppose the fiscal year ends in the month of December. And the transaction took place in November 2017. So you will need to prepare the balance sheets and income statements as at December 31, 2017 (beginning of year 1) and December 31, 2018 (end of year 1) You may observe in the illustration that income is recognized when earned. This means that you (Bank) should recognize your income in the income statement when the customer uses your money (Bank's Money) for a full year. An Islamic financial institution provides a financing of $100,000 at a constant rate of return of 10% for a period of 5 years and requires an annual installment payment of $30,000 Prepare an extract of the Balance Sheet and income statement at the beginning and end of Year 1 Workings Uneared income (5x30,000) - 100,000 - RM 50,000 Balance sheet Murabaha financing Unearned income Net receivable Income statement Murabaha Income Year 0 150,000 (50,000) 100,000 Year 1 120,000 (40,000) 80,000 10,000 Working : Income = 10% of RM100,000 per year. Question: Using the information given below prepare an extract of the Balance Sheet and income statement at the beginning and end of Year 1 for the Islamic Bank. 4 An Islamic Bank provides a Murabaha to the Purchase Orderer financing to Barakah Construction to purchase a specialized equipment to be used for Barakah Construction's business project. Financing is for USS 500,000 at a constant rate of return of 10% for a period of 5 years. The annual installment payment is USS 150,000. Note: Suppose the fiscal year ends in the month of December. And the transaction took place in November 2017. So you will need to prepare the balance sheets and income statements as at December 31, 2017 (beginning of year 1) and December 31, 2018 (end of year 1) You may observe in the illustration that income is recognized when earned. This means that you (Bank) should recognize your income in the income statement when the customer uses your money (Bank's Money) for a full year