Problem 1. (20 points) Baker Company began its business as a corporation on May 1, 2007. The following are the company's transactions for May: May 1: The company sold 1,000 shares of its non-par common stock for $23,000 cash. May 1: The company obtained a $10,000, 8%, 12-month loan from People's Bank. The interest and principal are due May 1, 200Y. May 3: The company bought security equipment for $8,400 cash. Baker expects the equipment to last four years and have no residual value. It will be depreciated using the straight-line method. 1 May 5: The company paid a total of $4,500 cash rent for May and June. May 12: The company bought $17,000 in merchandise inventory. The inventory was purchased on credit, and the vendor is allowing the company to pay for It In 30 days. May 18: The company sold merchandise inventory costing $5,000 for a total selling price of $11,000 to customers for cash. May 29: The company sold merchandise inventory costing $7,500 for a total selling price of $20,000 to customers on credit. The customers have 30 days to pay. May 29: The company received from a customer $8,000 cash in advance for merchandise Inventory to be shipped in 20 days. 1) Prepare the general journal entries for May under the accrual basis. Please use the general journal provided below and skip the explanations