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Santana Rey created Business Solutions on October 1, 2020. The company has been successful, and Santana plans to expand her business. She believes that an additional $112,000 is needed and is investigating three funding sources. a. Santana's sister Cicely is willing to invest $112,000 in the business as a common shareholder. Because Santana currently has about $168,000 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 $112,000 in the business as a preferred shareholder. Marcello would purchase 1,120 shares of $100 par value, 8% preferred stock. c. Santana's banker is willing to lend her $112,000 on a 8%,11-year note payable. She would make monthly payments of $1,279 for 11 years. Required: 1. Prepare the journal entry to reflect the initial $112,000 investment under each of the options (a), (b), and (c). Journal entry worksheet Record the issue of common stock of $112,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the issue of preferred stock of $112,000 cash. Note: Enter debits before credits. Journal entry worksheet 1 Record the issue of a note for $112,000 loan from the bank. Note: Enter debits before credits

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