Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-month pass for automatic car wash sells for $65, 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 $1,920 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

	1. Record the cash transaction on December 01, 2016. 2. Record the cash transaction on December 31, 2016.

• the cash transaction on December 31, 2016.

Date

General Journal

Debit

Credit

December 01
December 31

2.

State the account titles and amounts that will be included in Squeaky Shines 2016 income statement and balance sheet.

Account Titles	Amounts	Income Statement and Balance Sheet
Revenue		Income statement
Cash		Balance sheet
Deferred revenue		Balance sheet

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