Malcolm Inc. was incorporated on January 1, 2010, with the issuance of capital stock in return for $90,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $75,300 note payable in exchange for building and equipment. The following trial balance was prepared at the end of the first month by the bookkeeper for Malcolm Inc:

Required
1. Identify the two errors in the trial balance. Ignore depreciation expense and interest expense.
2. Prepare a corrected trialbalance.

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Malcolm Inc. Trial Balance January 31, 2010 Account Titles Debits Credits S 9,980 8,640 80,000 50,000 23,500 Cash Accounts Receivable Land Building Equipment Notes Payable Capital Stock Service Revenue Wage and Salary Expense Advertising Expense Utilities Expense Dividends Totals $ 75,300 90,000 50,340 23,700 4,600 8.420 5,000 $220,640 $208,840