Squeaky Shine provides car washing services in Jersey City, New Jersey. A three$-$month pass for automatic car wash sells for $$60,$ which entitles the customer for an unlimited number of car washes during the contract period. Squeaky Shine estimates that pass holders wash their cars equally throughout the three$-$month period. On December $1$st$,$ customers purchased $$2,160$ of the three$-$month passes, with usage of the passes occurring evenly throughout the contract period.

Required:

Prepare the journal entries that Squeaky Shine would record on December $1$ and on December $31,2024,$ with respect to this transaction.

State the account titles and amounts that will be included in Squeaky Shine's $2024$ income statement and balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare the journal entries that Squeaky Shine would record on December $1$ and on December $31,2024,$ with respect to this transaction. Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.

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Journal entry worksheet

$1$

$2$

Record the cash transaction on December $01,2024.$

Note: Enter debits before credits.

$\backslash$table$[[$General Journal,Debit,Credit,$],[,,,]]$