Identify the correct journal entries at the time of contracting the murabaha contract under the following scenario: An Islamic bank enters into a murabaha financing agreement for a plant at a cost of

$300,000 and profit of $100,000. It has purchased the asset already.

a. Debit: Murabaha Financing; Credit: Equipment and Deferred Profit

b. Debit: Cash; Credit: Equipment and Deferred Profit

c. Debit: Murabaha Financing; Credit: Cash and Profit with the appropriate amounts

d. Debit: Murabaha Financing; Credit: Accounts Payable and Deferred Profit.