Kathy Curtains Sdn Bhd is a supplier of curtains and blinds for offices. To expand the business, the company requires funding for its heavy duty sewing machines. Kathy Curtains approached Falah Islamic Bank in December 2019 for the financing of two sewing machines that will be imported from Japan. The purchase price of each machine is RM300,000. The bank agreed to finance the transaction on the principle of Murabahah with a profit margin of 8% per annum. Kathy Curtains Sdn Bhd paid 10% of the purchase price as Hamish Jiddiyah on the same day the negotiations took place. The bank purchased the machines for cash from Sumi Company on 20 th December 2019. The contract for the Murabahah financing with Kathy Curtains Sdn bhd was duly signed on the 31 st December 2019. The delivery of machines were effected on the same day. Kathy Curtains Sdn Bhd will be charged a penalty of 1% on the amount due for any late payment. Kathy Curtains Sdn Bhd also agreed to settle the Murabahah financing over a five year period on a quarterly installment basis with the first installment due on the 31 st of March 2020. The third installment due on the 30 th September, 2020 was not paid until a month later. You are required: a) To prepare the necessary journal entries for the transactions in the book of Falah Islamic bank from 20 th December 2019 to 31 st December 2020. (10 marks) b) Prepare an extract of the income statement for the year ended 31 st December 2020 and the statement of financial position as at 31 st December 2020. (5 marks) 5 c) Bank Negara Malaysia allows Islamic banks to charge late payment charges and these charges are split into two components. Discuss. (5 marks)