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. 2) Prepare the adjusting journal entries for the depreciation on security equipment, the interest on the $50,000 loan, and the expired rent in May under the accrual basis. Please use the general joumal provided below and skip the explanations