Question: 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

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

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