Journal entry preparation. On January 1 of the current year, Peter Houston invested $100,000 cash into his company MuniServ. Shortly…

Journal entry preparation. On January 1 of the current year, Peter Houston invested $100,000 cash into his company MuniServ. Shortly thereafter, the company ac¬quired selected assets of a bankrupt competitor. The acquisition included land ($15,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $20,000 (an account payable) by February 15. During January, the company had additional cash outlays for the follow¬ing items: Purchases of store equipment $4,600 Loan payment 500 Salaries expense 2,300 Advertising expense 700 The January utilities bill of $200 was received on January 31 and will be paid on February 10. MuniServ rendered services to clients on account amounting to $9,400 and $3,700 had been received in settlement. Instructions a. Present journal entries that reflect MuniServ’s January transactions, starting with the $100,000 investment. b. Compute the total debits, total credits, and ending balance that would be found in the company’s Cash account. (Post to “T” Accounts) c. Prepare a trail balance as of January 31.