Exercise 1- Understanding double-entry accounting transactions Below are the records of five transactions made by Roni Inc. during the year ended December 31, 2017 2017 was Roni Inc.'s first year of operation. Ending Balance Accounts Dollar Effect of Each of the Six Transactions $20,000 7.000 4,000 4,000 Cash Investments 5,000 Notes Receivable Machine Notes payable Common Stock (100 shares 3,000 17,000 Required: (1) Explain the nature of each of the five transactions above. Example for transaction (2): Roni Inc. acquired a machine for $7,000 in cash. (2) Compute the ending balance of each account and prepare a classified balance sheet for Roni Inc. as of December 31, 2017