Kyle Township charges residents 100 per year to license

household
Kyle Township charges residents $100 per year to license household pets. As specified in a
statute enacted in 2018, residents are required to purchase a license by October 1 of each year;
the license covers the period October 1 through September 30.The license fees are not
refundable. The statute authorizing the fees specifically states that the revenues are to be used
to support the township's animal control program. The program, which will be carried out
throughout the year, is not expected to receive financial support from any other sources.During
the calendar year 2018 (which corresponds to the township's fiscal year), the township collected
$36,000 in license fees for the 2018-2019 licensing period.1. Prepare a journal entry to record
the township's receipt of the license fees.2. Would you consider the license fees to be exchange
or non-exchange revenue? Explain.3. How do you justify the accounting standard on which your
entry is based (especially because the license period overlaps two fiscal years)?View Solution:
Kyle Township charges residents 100 per year to license household
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