572 Chapter 13 Accounting for Corporations SERIAL PROBLEM (This serial problem began in Chapter I and continues through most of the book. If previous chapter seg- ments were not completed, the serial problem can begin at this point. It is helpful, but not necessary, to use the Working Papers that accompany the book.,) P1 C1 C2 SP 13 Santana Rey created Business Solutions on October 1, 2015. The company has been successful, and Santana plans to expand her business. She believes that an additional $86,000 is needed and is inves- tigating three funding sources. a. Santana's sister Cicely is willing to invest $86,000 in the business as a common shareholder. Since Santana currently has about $129,000 invested in the business, Cicely's investment will mean that Santana will maintain about 60% ownership, and Cicely will have 40% ownership of Business Solutions. Marcello would purchase 860 shares of $100 par value, 7% preferred stock. monthly payments of $1,000 per month for 10 years. b. Santana's uncle Marcello is willing to invest $86,000 in the business as a preferred shareholder. C. Santana's banker is willing to lend her $86,000 on a 7%, 10-year note payable. She would make Roquirod 1. Prepare the journal entry to reflect the inial $86,000 investment under each of the options (a), (b) and (c)