Required information Exercise 2-12A Correct recorded transactions (LO2-4) [The following information applies to the questions displayed below.] 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 1. Owners invest $10,500 in the company and receive common stock. Accounts Common Stock Cash Debit 10,500 10,500 2. Receive cash of $3,100 for services provided in the current period. Cash 3,100 Service Revenue 3,100 3. Purchase office supplies on account, $210. 210 Supplies Cash 210 4. Pay $510 for next month's rent. 510 Rent Expense Cash 510 5. Purchase office equipment with cash of $1,750. 1,750 Cash Equipment 1,750 Exercise 2-12A Part 1 Required: 1. Assess whether the proposed entries are correct or incorrect. External Transaction 1. 2. 3. 4. 5