Schedule Using the documents provided under the Exhibits tab, complete the schedule below to record the initial transaction for the sale of the late plant facility, the application of subsequent cash collections on the note, and the necessary Journal entry on the date the transaction is complete. If the value of a cell is zero, you must enter a raro ("0") to receive credit for your answer Cash Received Dr. Hobson, Inc. Note Idle Plant Receivable (Net) Dr. (Cr.) (Cr.) Deferred Income Dr. (Cr.) Income Recognized (Cr.) 01/01/20X1 07/01/20X2 07/01/2003 02/01/20X4 SUBMIT SIMULATION Simulation 30022 HOBSON, INC. BOARD OF DIRECTORS MINUTES FOR 20X1 DATE DESCRIPTION OF ACTIVITY JANUARY 1 Approved the sale of idle plant to Jackson, Inc., for $700,000. Under the agreement, Jackson will pay $100,000 immediately, and will sign a note receivable for the remaining amount. The note is secured by a mortgage on the property. 47 Document #2: PROPERTY SUBLEDGER Date Type 1.1.20x1 Plant, net Comments Plant has been idle for 2 years Amount $500,000 INTEROFFICE MEMO Date: January 2, 20X1 TO: Accounting FROM: Controller RE: Sale of Idle Plant For the sale of an idle plant to Jackson, Inc., finalized on January 1, 20x1, the transaction will be accounted for under the cost recovery method since there is no reasonable basis for estimating the degree of collectability of the note receivable. Document #4: 1574 JACKSON, INC. 254 Hibiscus Avenue Key West, Fl. Date: January 1, 20X1 Pay to the Order of. Hobson, Inc. $ 100,000 Ore kandred thousand Dollars I.M. Sargent, CPA Memo: Purchase of plant 1:123456789012345678 : 1234 Controller Document #5: Note Receivable - Plant Amount: $600,000 Date: January 1, 20X1 Jackson, Inc., commits to pay Hobson, Inc., the Sum of $600,000 for the purchase of a plant located at 356 Water Way, Tampa, Fl. Repayment is to be made in the form of annual principal installment payments as shown below, plus interest of 10% per annum for any late payments: January 1, 20X2 $100,000 January 1, 20X3 200,000 January 1, 20X4 300,000 IN WITNESS WHEREOF, I set my hand under seal this 14 day of January, 20X1, and I acknowledge receipt of a completed copy of this instrument. En. Habant President, Hobsoning President, Jackson, Inc IM. Jackson Document #6: Cash Receipts Journal: Note Receivable - Jackson, Inc. Date Transaction Description Amount July 1, 20X2 Principal and interest expense, including late fee July 1, 20X3 Principal and interest expense, including late fee February 1, 20X4 Principal and interest expense, including late fee $190,000 275,000 332,500