The income statement of Dolan Corporation for 2017 included the following items:

Interest Revenue $141,000

Salaries and Wages Expense 210,000

Insurance Expense 21,000

The following balance have been excerpted from Dolan Corporation's balance sheets:

Dec 31, 2017 Dec 31, 2016

Interest Receivable $18,200 $15,000

Salaries and Wages payable 17,800 8,400

Prepaid Insurance 2,200 3,000

The cash received for interest durning 2017 was?

(A) $122,800

(B) $137,800

(C) $141,000

(D) $144,200

(B) $137,800

Explanation:

For the provided information, we have,

Interest Revenue for 2017 = $141,000

Interest Receivable Opening = $15,000

Interest Receivable Closing = $18,200

Therefore, Cash received for interest = Opening interest receivables + Interest revenue for the period - Closing interest receivables

= $15,000 + $141,000 - $18,200 = $137,800

Note: Interest Expense for the period will not be considered. As, Interest expense and interest revenue are both different items.

Thus, correct option is;

(B) $137,800

Answer: Option (B) is correct.

Explanation:

Given that,

Interest Revenue = $141,000

Salaries and Wages Expense = 210,000

Insurance Expense = 21,000

Interest Receivable (2017) = $18,200

Interest Receivable (2016) = $15,000

Salaries and Wages payable (2017) = $17,800

Salaries and Wages payable (2016) = $8,400

Cash Received for Interest:

= Opening Accrued Interest Receivable + Interest Revenue - Closing Accrued Interest Receivable

= $15,000 + $141,000 - $18,200

= $137,800