Provide an Explanation for the Following Journal Entries

question 54

Essay

Provide an explanation for the following journal entries:
(a) Prepaid Rent debited, Cash credited
(b) Office supplies debited, Accounts Payable credited
(c) Cash debited, Capital credited
(d) Withdrawals debited, Cash credited
(e) Accounts Payable debited, Cash credited

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of a firm's shareholders' wealth maximization.

Long-Term Investments

Assets intended to be held for more than one year, including stocks, bonds, real estate, and other financial instruments.

Financial Markets

Platforms or systems where buyers and sellers engage in the trading of financial assets such as stocks, bonds, currencies, and derivatives.