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. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on February 28?
A) $300,000.
B) $600,000.
C) $1,200,000.
D) $800,000.
E) $900,000.

Question

Quizplus · Accepted Answer

The college should recognize $300,000 of tuition revenue for each month of the four-month term. By February 28, two months have passed, so $600,000 should be recognized in total, but for February alone, it is $300,000.

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