Interest come that record in income statement referred to non-operating income that entities earned during the periods of time from their investment. Investment here included short term deposit, long term or fixed deposit, saving account, due credit charged to customers, and similar kind. In income statement, it is recording separately from operation if the income statement use multiple step income statement, but if it use single step income statement, it is recorded in the revenue section.
The entity normally use the accrual principle to records interest income, and the amount that shown represent both the collected amount and the accrual amount.
Interest incomes here are not represent the total interest income that entity received during the period. It is the amount that entity should earned and records in the income statement during the period. If part of the amount are received, the remaining are recorded in balance sheet as receivable.
However, not all of interest incomes are due within 12 months. In some situation, the term and condition in the contract required interests to be paid more than 12 months. In this case, for the amount that expected to receive more than 12 months, the entity should records in the balance sheet in non-current assets sections.
In case the entity received the entire amount during the year, then there should be no remaining balance records in balance sheet.
For example, the entity has long term deposit the excess amount of cash into the bank with interest rate for 12% annually. The principle amount 500,000 USD. The interest income that entity earned is 60,000 USD. During the year, entity received 20,000 from the bank. The remaining amounts are unpaid at the end of the year and expected to be paid within 12 months.
Based on this information, entity should record interest income amount 60,000 USD in its income statement and the remaining amount 30,000 USD should be records as interest receivable in balance sheet under current assets section.