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. External Transaction Accounts Debit Credit 1. Owners invest $7,000 in the company and receive common stock. Common Stock 7,000 Cash 7,000 2. Receive cash of $2,400 for services provided in the current period. 2.400 Cash Service Revenue 2.400 140 3. Purchase office supplies on account. $140. Supplies Cash 140 440 4. Pay $440 for next month's rent. Rent Expense Cash 440 1,400 5. Purchase office equipment with cash of $1,400. Cash Equipment 1,400 Required: 1. Assess whether the proposed entries are correct or incorrect. External Transaction 1 2 3. 4 5 Cash Service Revenue 3. Purchase office supplies on account, $140. N Supplies Cash 4. Pay $440 for next month's rent. Rent Expense Cash 5. Purchase office equipment with cash of $1,400. Cash Equipment 1,4 Required: 1. Assess whether the proposed entries are correct or incorrect. External Transaction 1. 2. 3. 4. 5