Santana Rey created Business Solutions on October $1,2021.$ The company has been successful, and Santana plans to expand her

business. She believes that an additional $$88,000$ is needed and is investigating three funding sources.

a$.$ Santana's sister Cicely is willing to invest $$88,000$ in the business as a common shareholder. Because Santana currently has

about $$132,000$ 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.

b$.$ Santana's uncle Marcello is willing to invest $$88,000$ in the business as a preferred shareholder. Marcello would purchase $880$

shares of $$100$ par value, $8\%$ preferred stock.

c$.$ Santana's banker is willing to lend her $$88,000$ on a $8\%,10-$year note payable. She would make monthly payments of $$1,068$ for

$10$ years.

Required:

Prepare the journal entry to reflect the initial $$88,000$ investment under each of the options $a,b,$ and $c.$

Journal entry worksheet

Record the issue of common stock of $$88,000$ cash.

Note: Enter debits before credits. Required:

Prepare the journal entry to reflect the initial $$88,000$ investment under each of the options $a,b,$ and $c.$

Journal entry worksheet

Record the issue of a note for $$88,000$ loan from the bank.

Note: Enter debits before credits. Required:

Prepare the journal entry to reflect the initial $$88,000$ investment under each of the options $a,b,$ and $c.$

Journal entry worksheet

Record the issue of preferred stock of $$88,000$ cash.

Note: Enter debits before credits.