Interest receivable on January 1 and December 31 totals $3,780 and $3,450, respectively. During the year, cash received from interest is $11,000. Determine interest revenue for the current year.

Question

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The interest receivable on January 1 and December 31 has decreased from $3,780 to $3,450, indicating that $330 ($3,780 - $3,450) of interest has been accrued but not yet received by the end of the year. 
Therefore, the total interest revenue for the year is calculated as follows: 
Interest revenue = cash received + interest receivable on December 31 - interest receivable on January 1 
Interest revenue = $11,000 + $3,450 - $3,780 
Interest revenue = $10,670

Interest Receivable on January 1 and December 31 Totals $3,780