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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

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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 currentiy 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: 1. 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. Notei Enter debits before credits. 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: 1. 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: Erter debits before crests. 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: 1. 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

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