Below are several transactions for Crimson Tide Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions.

Required:
Assess whether the junior accountant correctly proposes how to record each transaction. If incorrect, provide the correction.

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External Transaction Accounts Cash Cash Utilities Expense Debit 800 3,400 500 400 1,200 Credit 800 3,400 500 400 1,200 1. Pay cash dividends of $800 to 2. Provide services on account for 3. Pay a $500 utilities bill for the 4. Receive cash of $400 from previously Cash 5. Pay for supplies previously stockholders. customers, $3,400. current period. billed customers. purchased on account, $1,200. Dividends Service Revenue Cash Service Revenue Cash Supplies Expense