Santana Rey created Business Solutions on October 1, 2021. The company has been successful, and Santana plans to expand herbusiness. She believes that an additional $88,000 is needed and is investigating three funding sources.a. Santana's sister Cicely is willing to invest $88,000 in the business as a common shareholder. Because Santana currently has about$132,000 invested in the business, Cicely's investment will mean that Santana will maintain about 60% ownership and Cicely willhave 40% ownership of Business Solutions.b. Santana's uncle Marcello is willing to invest $88,000 in the business as a preferred shareholder. Marcello would purchase 880shares of $100 par value, 8% preferred stock.c. Santana's banker is willing to lend her $88,000 on a 8%, 10-year note payable. She would make monthly payments$1,068 for 10years.Required:1. Prepare the journal entry to reflect the initial $88,000 investment under each of the options a, b, and c.View transaction listJournal entry worksheet12>Record the issue of common stock of $88,000 cash.Note: Enter debits before credits.TransactionGeneral JournalDebitCredita.Record entryClear entryView general journal

The question is based on the concept of Financial Accounting.a) Santana’s sister Cicely is willing to invest $88,000 in the business as a common shareholder. Since Santana currently has about $132,000 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. Dr Cash $88,000Cr Common stock $88,000 b) Santana’s uncle Marcello is willing to invest $88,000 in the business as a preferred shareholder. Marcello would purchase 880 shares of $100 par value, 8% preferred stock. Dr Cash $88,000Cr Preferred stock $88,000 c) Santana’s banker is willing to lend her $88,000 on a 8%, 10-year note payable. She would make monthly payments of $1,068 per month for 10 years Dr Cash $88,000Cr Note Payable $88,000