Below are several transactions for Scarlet Knight 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 Debit 15,000 4,000 300 600 Accounts Credit 1. Owners invest S15,000 in the Common Stock company and receive common stock 2. Receive cash of $4,000 for services Cash Cash 15,000 4,000 300 600 2,200 provided in the current period. Service Revenue 3. Purchase office supplies on account,Supplies Cash $300 4. Pay $600 for next month's rent. Rent Expense Cash 5. Purchase office equipment with cash Cash 2,200 of S2,200 Equipment