[Solved] Squeaky Shine Provides Car Washing Services in Jersey City,New Jersey

Question 244
Essay

Squeaky Shine provides car washing services in Jersey City,New Jersey.A three-month pass for automatic car wash sells for $60,which entitles the customer for an unlimited number of car washes during the contract period.Squeaky Shine estimates that pass holders wash their cars equally throughout the three-month period.On December 1st,customers purchased $1,260 of the three-month passes,with purchases of the passes occurring evenly throughout December.
Required:
1)Prepare the journal entries that Squeaky Shine would record on December 1 and on December 31,2016,with respect to this transaction.
2)State the account titles and amounts that will be included in Squeaky Shine's 2016 income statement and balance sheet.

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