Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions, External Transaction Accounts Debit Credit 1 Owners invest $7,500 in the company and receive common stock. Common Stock 7.500 Cash 7,500 2. Receive cash of $2,500 for services provided in the current period. Cash 2.500 Service Revenue 2,500 3. Purchase office supplies on account. $150. Supplies 150 Cash 150 4. Pay $450 for next month's rent Rent Expense 450 Cash 450 5. Purchase office equipment with cash of $1.450, Cash 1,450 Equipment 1,450 Required: 1. Assess whether the proposed entries are correct or incorrect External Transaction 1 2 3 4 5