On January 1, Eastern College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. 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 spreads the revenue evenly over the months of the term, so for January (the first month of the term), the amount of tuition revenue recognized would be one-fourth of the total amount of unearned tuition and fees received:
$1,200,000 / 4 = $300,000.

On January 1, Eastern College Received $1,200,000 from Its Students