Required information (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 $12,500 in the company and receive common stock. Accounts Common Stock Cash Debit 12,500 12,500 2. Receive cash of $3,500 for services provided in the current period. 3,500 Cash Service Revenue 3,500 3. Purchase office supplies on account, $250. 250 Supplies Cash 250 4. Pay $550 for next month's rent. 550 Rent Expense Cash 550 5. Purchase office equipment with cash of $1,950. 1,950 Cash Equipment 1,950 Required: 1. Assess whether the proposed entries are correct or incorrect. External Transaction 1. 2. 3. 4. 5