Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions.

Required:
Assess whether the junior accountant correctly proposes how to record each transaction. If incorrect, provide thecorrection.

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Debit Credit 1,300 External Transaction Account Titles Cash 1. Provide services to customers on account, S1,300 Service Revenue 1.300 2. Pay advertising for the current Cash 1,100 period, S1,100 Advertising Expense 1.100 3. Receive cash of S2,500 froma Caslh 2,500 bank loan Bank Loan Payable 2,500 4. Pay cash dividend of S1,000 to Common Stock 1,000 stockholders Cash 1.000 1.800 5. Pay for employee salaries in the current period, S1,800 Salaries Expense Cash 1800