On January 1, Southwest College received $1,200,000 in Unearned Tuition Revenue from its students for the spring semester, which spans four months beginning on January 2. What amount of tuition revenue should the college recognize on January 31?
A) $300,000.
B) $600,000.
C) $800,000.
D) $900,000.
E) $1,200,000.

Question

Quizplus · Accepted Answer

The college should recognize $300,000 in tuition revenue on January 31, as this represents one month's worth of the four-month semester tuition ($1,200,000 / 4 months = $300,000 per month).

On January 1, Southwest College Received $1,200,000 in Unearned Tuition