Question

The income statement of Dolan Corporation for 2014 included the following items:Interest revenue $121,000Salaries and wages expense $180,000Insurance expense $18,200.The following blances have been excerpted from Dolan Corporation's balance sheets:December 31, 2014 December 31, 2013,Interest receivable $18,200 $15,000Salaries and wages Payable $17,800 $8,400Prepaid Insurance $2,200 $3,000The cash received for interest during 2014 was:a. $121,000b. $102,800c. $117,800d. $124,200

Answer 1

Answer:

c. $117,800

Explanation:

Provided information we have,

Interest revenue for the year = $121,000

Opening interest receivable = $15,000

Closing interest receivable = $18,200

Therefore, for above

Interest received during the year = Opening interest receivable + Interest revenue for the year - Closing interest receivables

= $15,000 + $121,000 - $18,200 = $117,800

Therefore, correct option is

c. $117,800