A college has a June 30 fiscal year end. Assume that tuition revenue for the summer session that begins June 1, 20X8, and ends August 31, 20X8 totals $270,000. Tuition is billed and is due at the beginning of the session term. How much revenue should be reported as of the fiscal year ended June 30, 20X8?

Question

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The revenue reported as of the fiscal year ended June 30, 20X8, should reflect the portion of the summer session that falls within the fiscal year. Since the session runs from June 1 to August 31 (3 months) and only one month (June) falls within the fiscal year ending June 30, 20X8, only 1/3 of the $270,000 should be recognized in that fiscal year, which is $90,000.

A College Has a June 30 Fiscal Year End