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 $10,000 in the company and receive common stock. Accounts Common Stock Cash Debit 10,000 10,000 2. Receive cash of $3,000 for services provided in the current period. 3,000 Cash Service Revenue 3,000 3. Purchase office supplies on account, $200. 200 Supplies Cash 200 4. Pay $500 for next month's rent. 500 Rent Expense Cash 500 5. Purchase office equipment with cash of $1,700. 1,700 Cash Equipment 1,700 Required: 1. Assess whether the proposed entries are correct or incorrect. External Transaction 1. 2. 3. 4. 5