Explanation:
The Journal Entry is shown below:-
Cash Dr, Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â $15,750
To Interest revenue        $625
To Interest receivable       $125
To Note receivable         $15,000
(Being cash is recorded)
Working Note :-
Interest revenue = Note receivable × Interest rate × Time period
= 15,000 × 10% × 150 ÷ 360
= $625