Question 7 Bank Islam provided a Murahahah financing facility amounting to $100,000 to Skytrex Construction to purchase equipment on 1st January 2011. The mark-up was agreed at 10% per year on the initial sale price of the equipment. The Murabahah installments were to be paid in equal instatements annually at the end of the year over the next 5 years. It was agreed that a late penalty payment of 5% of the installments receivable was to be charged to Skytrex Construction if they fail to pay on time. The Shari'ah Supervisory Board of the bank has decided that the penalty should not be treated as part of the bank's income. The following events took place in the following four years to 319 December 2014. Jan 1, 2011: The Murabahah contract was signed and the bank purchased the equipment for $100,000 which was delivered directly to the client's construction site. The bank paid for the equipment in cash. Dec 31, 2011: The client paid the bank the installment as scheduled. Dec 31, 2012: The client could not pay on time but subsequently paid the installment and the penalty on March 31, 2013. Dec 31, 2013: The client paid the bank the installment as scheduled. Jan 1, 2014: Skytrex Construction decided to pay off the amount in full and requested the bank for a rebate. The bank decided to give a 7.5% rebate on the outstanding balance in the Murabahah account. On the same day, Skytrex Construction settled all payments. Required: a. Journal entries for Jan 1, 2011. b. Journal entries for Dec 31, 2011. c. Journal entries for Dec 31, 2012. d. Journal entries for March 31, 2013. e. Journal entries for Jan 1, 2014. f. Extract of the Income Statement for year ending 2011, 2012, 2013 and 2014. g. Extract of the Statement of Financial Position as at 31 December 2011, 2012, 2013 and 2014