California University of Pennsylvania offers 10 week summer class sessions. Tuit

Question

California University of Pennsylvania offers 10 week summer class sessions. Tuition for 1 class during those 10 week summer sessions is $2,000 per student. Assuming that 1,000 students take a summer class, determine the amount of revenue that would be recognized for the year ended June 30, 2017 and the amount of revenue that would be recognized in the following year.  

Additional information:

The summer class schedule runs for 10 weeks, with 4 weeks coming before June 30 and 6 weeks coming after June 30

The University fiscal year ends on June 30

Assume that students receive the following scholarships:

Scholarships based on grades: $400,000

Scholarships for children of parents who work for university: $150,000

Scholarships for work study participants: $75,000

Calculate the amount of revenue that the university should recognize in 2017 and the amount to be recognized in the following year.

Explanation / Answer

Total Revenue = 2000*1000 = $ 2000000

Revenue Till June 2017 = 2000000*4/10 = $ 800000

Revenue would be recognized in following year = 2000000*6/10 = $ 1200000

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