Sky Company collected $12,350 in interest during 2013.Sky showed $1,850 in interest receivable on its December 31,2013,balance sheet and $5,300 on December 31,2012.The interest revenue on the income statement for 2013 was
A) $3,450.
B) $8,900.
C) $12,350.
D) $14,200.

Question

Quizplus · Accepted Answer

To find out the interest revenue for 2013, we need to calculate the total interest earned during the year and subtract the interest receivable at the beginning and end of the year.

Total interest earned during 2013 = $12,350
Interest receivable on December 31, 2013 = $1,850
Interest receivable on December 31, 2012 = $5,300

So, the interest revenue for 2013 can be calculated as follows:

Interest revenue = Total interest earned - Interest receivable on December 31, 2013 + Interest receivable on December 31, 2012
Interest revenue = $12,350 - $1,850 + $5,300
Interest revenue = $8,900

Therefore, the correct choice is B) $8,900.

Sky Company Collected $12,350 in Interest During 2013