Question

The university orders 60,000 season football tickets and pays $8,340 in advance for the printing. The first game will be played in September. What is the university's expense in January?

1) $8,340
2) $0
3) Cannot be determined
4) Other

Answer 1

The university's expense in January for the football tickets that were paid for in advance is $0, as the prepaid cost of $8,340 was accounted for in the month it was paid.

Step-by-step explanation:

The question asks what the university's expense is in January for season football tickets that were paid for in advance. The university paid $8,340 in advance for the printing of 60,000 season football tickets.

Since the payment is done in advance and assuming there are no additional monthly expenses directly related to the initial printing cost, the expense recorded in January for the printing of the tickets would be $0. This is because the initial expense was made prior to January, and prepaid expenses like these are typically accounted for in the month they are paid, not when the service is used or the goods are consumed.