Santana Rey created Business Solutions on October The company has been successful, and Santana plans to expand her
business. She believes that an additional $ is needed and is investigating three funding sources.
a Santana's sister Cicely is willing to invest $ in the business as a common shareholder. Because Santana currently has
about $ invested in the business, Cicely's investment will mean that Santana will maintain about ownership and
Cicely will have ownership of Business Solutions.
b Santana's uncle Marcello is willing to invest $ in the business as a preferred shareholder. Marcello would purchase
shares of $ par value, preferred stock.
c Santana's banker is willing to lend her $ on a year note payable. She would make monthly payments of $ for
years.
Required:
Prepare the journal entry to reflect the initial $ investment under each of the options and
