Problem 2 (20 points) The Firm was organized by five investors at the beginning of the year. The following activities occurred during the year. 1) Received $42,000 cash from the investors; investors were issued 1,200 shares of common stock with a par value of $0.3 per share. 2) Purchased equipment for use in the business at a cost of $12,500;$5,000 was paid in cash and the company signed a note for the balance. 3) Lent $1,700 to one of the investors who signed a note due in six months. (a) Prepare the joumal entries for each transaction. (b) Create the T-account for cash. Assume that the beginning balance is zero. For each of the three transactions, record the effects of the transaction in the cash T-account. In addition, calculate the ending balance in the T-account