What is the correct journal entry for the transaction below?
On the first day of starting business operations, paid cash $5,000 for two years' rent
a.Debit prepaid rent $5,000; and credit cash $5,000
b.Debit rent expense $5,000; and credit cash $5,000
c.Debit owner's capital $5,000; and credit rent expense $5,000
d.Debit rent expense $5,000; and credit accounts payable $5,000
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.
