Line 16E of Schedule K-1 (1120-S) is referring to repayment of loans that you made to the company. (The company is paying you back.) This affects your basis in the business but only affects your tax return if you have a loss and are claiming the loss using that basis.
You are asking about #4. If this is a question about the interest income reported on Line 4 of the K-1, this is interest income the company has received from some source. It is your share of the interest income that would be reported on Schedule B as Interest Income.
