Homework Help is Here – Start Your Trial Now!
Business
Accounting
Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and Santana plans to expand her business. She believes that an additional $92,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $92,000 in the business as a common shareholder. Since Santana currently has about $138,000 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 $92,000 in the business as a preferred shareholder. Marcello would purchase 920 shares of $100 par value, 8% preferred stock. c. Santana's banker is willing to lend her $92,000 on a 8%, 10-year note payable. She would make monthly payments of $1,116 per month for 10 years. Required: 1. Prepare the journal entry to reflect the initial $92,000 investment under each of the options (a), (b), and (c).

Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and Santana plans to expand her business. She believes that an additional $92,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $92,000 in the business as a common shareholder. Since Santana currently has about $138,000 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 $92,000 in the business as a preferred shareholder. Marcello would purchase 920 shares of $100 par value, 8% preferred stock. c. Santana's banker is willing to lend her $92,000 on a 8%, 10-year note payable. She would make monthly payments of $1,116 per month for 10 years. Required: 1. Prepare the journal entry to reflect the initial $92,000 investment under each of the options (a), (b), and (c).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

don't give answer in image format 

Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and Santana plans to expand her business. She believes that an additional $92,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $92,000 in the business as a common shareholder. Since Santana currently has about $138,000 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 $92,000 in the business as a preferred shareholder. Marcello would purchase 920 shares of $100 par value, 8% preferred stock. c. Santana's banker is willing to lend her $92,000 on a 8%, 10-year note payable. She would make monthly payments of $1,116 per month for 10 years. Required: 1. Prepare the journal entry to reflect the initial $92,000 investment under each of the options (a), (b), and (c).
Transcribed Image Text:Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and Santana plans to expand her business. She believes that an additional $92,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $92,000 in the business as a common shareholder. Since Santana currently has about $138,000 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 $92,000 in the business as a preferred shareholder. Marcello would purchase 920 shares of $100 par value, 8% preferred stock. c. Santana's banker is willing to lend her $92,000 on a 8%, 10-year note payable. She would make monthly payments of $1,116 per month for 10 years. Required: 1. Prepare the journal entry to reflect the initial $92,000 investment under each of the options (a), (b), and (c).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Types of business entities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS