The Following Data Applies to the Next Two Questions

question 29

Multiple Choice

The following data applies to the next two questions.
•Northern University has a fiscal year end of June 30.
•In June 2014, tuition and fees of $1,200,000 was assessed for the summer term that runs from June 1, 2014 through August 31, 2014. $1,200,000 was collected on June 1, 2014.
-What is the journal entry on June 1 for Northern?

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Definitions:

Additive Inverse

The number that when added to the original number, yields zero.

Multiplicative Inverse

A number which, when multiplied by the original number, results in one. It's often referred to as the reciprocal.

Compounded Monthly

A term used in finance to describe a process where interest is added to the principal balance of an investment or loan each month, and future interest accumulations are based on the new balance.

Interest

The cost of borrowing money or the return on investment, calculated as a percentage of the principal amount over a period.