Textiles Hondureos, S.A., received, on December 4, 2014, a promissory note as payment of the debt of

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Question:

Textiles Hondureños, S.A., received, on December 4, 2014, a promissory note as payment of the debt of one of its clients: Telas Americanas, S.A. The value of the promissory note is $175,500, with a term of 60 days and an annual interest rate of 7.5%. On December 31, 2014, accrued interest on the Telas Americanas, S.A. promissory note was recorded, and the closing entry of the interest income account was recorded against the profit and loss account. On February 2, 2015, the promissory note and the interest corresponding to its maturity were collected. It is requested:

a) Calculate the total amount of interest that the promissory note will generate.

b) Determine the amount of interest earned as of December 31.

c) Determine the interest income to be recorded on February 2.

d) Determine the total cash that will be collected on February 2.