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Santana Rey created Business Solutions on October 1,2021. The company has been successful, and Santana...

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Accounting

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 $116,000 is needed and is investigating three funding sources.
a. Santana's sister Cicely is willing to invest $116,000 in the business as a common shareholder. Because Santana currently has
about $174,000 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 $116,000 in the business as a preferred shareholder. Marcello would purchase 1,160
shares of $100 par value, 9% preferred stock.
c. Santana's banker is willing to lend her $116,000 on a 9%,10-year note payable. She would make monthly payments of $1,469 for
10 years.
Required:
Prepare the journal entry to reflect the initial $116,000 investment under each of the options a,b, and c.
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