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 $90,000 is needed and is investigating three funding sources.

1. Santanas sister Cicely is willing to invest $90,000 in the business as a common shareholder. Because Santana currently has about $135,000 invested in the business, Cicelys investment will mean that Santana will maintain about 60% ownership and Cicely will have 40% ownership of Business Solutions.
2. Santanas uncle Marcello is willing to invest $90,000 in the business as a preferred shareholder. Marcello would purchase 900 shares of $100 par value, 9% preferred stock.
3. Santanas banker is willing to lend her $90,000 on a 9%, 11-year note payable. She would make monthly payments of $1,076 for 11 years.

Required:

1. Prepare the journal entry to reflect the initial $90,000 investment under each of the options a, b, and c.

Journal entry worksheet Record the issue of common stock of $90,000 cash. Note: Enter debits before credits. Journal entry worksheet 1 Record the issue of preferred stock of $90,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the issue of a note for $90,000 loan from the bank. Note: Enter debits before credits