Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SP 11 Serial Problem Business Solutions (Algo) LO P1, C1, C2 5 Santana Rey created Business Solutions on October 1, 2021. The company has been

image text in transcribed
image text in transcribed
image text in transcribed
SP 11 Serial Problem Business Solutions (Algo) LO P1, C1, C2 5 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 $96,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $96,000 in the business as a common shareholder. Because Santana currently has about $144,000 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 $96,000 in the business as a preferred shareholder. Marcello would purchase 960 shares of $100 par value, 9% preferred stock. c. Santana's banker is willing to lend her $96,000 on a 9%, 11-year note payable. She would make monthly payments of $1148 for 11 years. Required: 1. Prepare the Journal entry to reflect the initial $96,000 Investment under each of the options a, b, and a View transaction list Journal entry worksheet 1 2 3 Record the issue of common stock of $96,000 cash. Note: Enter debits before credits Required: 1. Prepare the journal entry to reflect the initial $96,000 investment under each of the options a, b, and c. View transaction list Journal entry worksheet Record the issue of preferred stock of $96,000 cash. Note: Enter debits before credits. Transaction General Journal Dobit Credit b. Record entry Clear entry View general journal Requi 1. Prepare the journal entry to reflect the initial $96,000 investment under each of the options a, b, and c. View transaction list Journal entry worksheet MAAR 1 N 3 Record the issue of a note for $96,000 loan from the bank. Note: Enter debits before credits. Transaction General Journal Dobit Credit c. Record entry Clear entry View general Journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Financial System Reform In Eastern Europe And Asia

Authors: Robert W. McGee, Galina G. Preobragenskaya

2nd Edition

0387257098, 9780387257099

More Books

Students also viewed these Accounting questions

Question

2. Discuss the evidence for psychopathy as a heritable disorder.

Answered: 1 week ago