If interest received amounted to $45,700 for the year,and the interest receivable account began the year with a balance of $5,400 and ended the year with a balance of $3,250,the interest revenue reported on the income statement for the year was:
A) $48,950
B) $47,850
C) $43,550
D) $40,300

Question

Quizplus · Accepted Answer

The interest revenue reported on the income statement is calculated by adjusting the interest received for changes in the interest receivable account. The formula is: Interest Revenue = Interest Received + Beginning Interest Receivable - Ending Interest Receivable. Therefore, $45,700 + $5,400 - $3,250 = $43,550.

If Interest Received Amounted to $45,700 for the Year,and the Interest