Business, 25.12.2019 03:31 shay68596

Santana rey created business solutions on october 1,2015. the company has been successful, and santana plans to expand her business. she believes that an additional $86,000 is needed and is investigating three funding sources.

(a) santana's sister cicely is willing to invest $86,000 in the business as a common shareholder. since santana currently has about $129,000 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 $86,000 in the business as a preferred shareholder. marcello would purchase 860 shares of $100 par value, 7% preferred stock. (c) santana's banker is willing to lend her $86,000 on a 7%, 10-year note payable. she would make monthly payments of $1,000 per month for 10 years.

required: prepare the journal entry to reflect the initial $86,000 investment under each of the options (a), (b), and (c).

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Santana rey created business solutions on october 1,2015. the company has been successful, and santa...

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