SES AND PROJECTS C3-55. Preparing Adjusting Entries, Financial Statements, and Closing Entries Seaside Surf Shop began operations on July 1, 2019, with an initial investment of $50,000. During LO2, 3, 4, 5, 6 the initial 3 months of operations, the following cash transactions were recorded in the firm's checking account. Cash receipts Cash payments Rent ...... Initial investment by owner... Collected from customers Borrowed from bank 7/1/2019 Total cash receipts $ 50,000 81,000 10,000 $141,000 Fixtures and equipment Merchandise inventory $ 24,000 25,000 62,000 6,000 Salaries. Other expenses Total cash payments. 13,000 $130,000 Additional information Most sales were for cash; however, the store accepted a limited amount of credit sales; at September 30, 2019, customers owed the store $9,000. 2. Rent was paid on July 1 for six months. 3. Salaries of $3,000 per month are paid on the 1st of each month for salaries earned in the month prior. 4. Inventories are purchased for cash; at September 30, 2019, inventory worth $21,000 was available. 5. Fixtures and equipment were expected to last five years with zero salvage value. 6. The bank charges 12% annual interest (1% per month) on its bank loan. REQUIRED a. Prepare any necessary adjusting entries at September 30, 2019, (1) using the financial state- ment effects template, and (2) in journal entry form. b. Set up T-accounts and post the adjusting entries to them. C Prepare its initial three-month income statement for 2019 and its balance sheet at September 30,2019. (Ignore taxes.) d. Analyze the statements from part c and assess the company's performance over its initial three months