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

6 Required information [The following information applies to the questions displayed below.] 15 points Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions. Credit External Transaction Owners invest $12,000 in the company and receive common stock. Accounts Common Stock Cash Debit 12,000 1. eBook 12,000 2. Receive cash of $3,400 for services provided in the current period. Cash Service Revenue 3,400 3,400 References 3. Purchase office supplies on account, $240. 240 Supplies Cash 240 4. Pay $540 for next month's rent. Rent Expense Cash 540 540 Purchase office equipment with cash of $1,900. 1,900 Cash Equipment 1,900 Required: 1. Assess whether the proposed entries are correct or incorrect. External Transaction 1 2 3 4 5