Reference no: EM132603580
Question - 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 $86,000 is needed and is investigating three funding sources.
1. 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.
2. 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.
3. 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.
|
Which of the statements regarding defined contribution plans
: Which of the statements regarding defined contribution plans is incorrect? The amount of the contribution is normally based on percentage of the employee wages
|
|
Compute predetermined indirect allocation rate per machine
: Compute predetermined indirect allocation rate per machine hour is closest to? The upcoming year, while 2,000 machine hours will be used during the year.
|
|
Why is base64 conversion useful for an e-mail application
: What is the difference between a MIME content type and a MIME transfer encoding? Why is base64 conversion useful for an e-mail application?
|
|
Discuss the roles of the servicer
: Explain the difference between a High Yield Bond, a Mezzanine piece and a B-note. Where would you rather be in the capital stack with your risk tolerance?
|
|
Prepare the journal entry to reflect the initial investment
: Santana Rey created Business Solutions on October 1, 2019. Prepare the journal entry to reflect the initial $86,000 investment under each of the options
|
|
What are the activity-cost driver rates for design changes
: Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?
|
|
What would you do to help create a national security culture
: If you could, what would you do to help create a national "security culture," in which everyone is more knowledgeable and proactive about threats.
|
|
Market consumer surplus and producer surplus
: In a market demand and supply equations are:The demand curve is given as: P = 30 - 2Q
|
|
Prepare the property and plant section of balance sheet
: On January 2, 2020, Bennett Company purchased land that cost $400,000, Prepare the property and plant section of balance sheet
|