On January 17, 2010, THX Company received rent of $90, 000 from a tenant.The rent is for the period January through September 2010.What amount of revenue should THX recognize in the quarterly income statement for the three months ended March 31, 2010, as a result of this cash receipt?
A)$90, 000
B)$30, 000
C)$22, 500
D)$ 0

Question

Quizplus · Accepted Answer

The rent received covers a nine-month period (January through September), so for the three months ended March 31, 2010, THX should recognize one-third of the total rent received as revenue, which is $30,000 ($90,000 divided by 3).

On January 17, 2010, THX Company Received Rent of $90