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. Cash 2,400 Service Revenue 2,400 3. Purchase office supplies on account, $140. Supplies 140 Cash 140 4. Pay $440 for next month's rent. Rent Expense 440 Cash 440 5. Purchase office equipment with cash of $1,400. Cash 1,400 Equipment 1,400 1. Assess whether the proposed entries are correct or incorrect. 1. 2. 3. 4. 5.

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. Cash 2,400 Service Revenue 2,400 3. Purchase office supplies on account, $140. Supplies 140 Cash 140 4. Pay $440 for next month's rent. Rent Expense 440 Cash 440 5. Purchase office equipment with cash of $1,400. Cash 1,400 Equipment 1,400 1. Assess whether the proposed entries are correct or incorrect. 1. 2. 3. 4. 5.

Principles of Accounting Volume 1

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ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...

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bartleby, a Learneo, Inc. business

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.	Cash	2,400
Service Revenue		2,400

3.	Purchase office supplies on account, $140.	Supplies	140
	Cash		140

4.	Pay $440 for next month's rent.	Rent Expense	440
	Cash		440

5.	Purchase office equipment with cash of $1,400.	Cash	1,400
	Equipment		1,400