Malcolm Inc. was incorporated on January 1, 2012, 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 book keeper for Malcolm Inc:

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

Malcolm Inc. Trial Balance January 31, 2012 Account Titles Debits Credits Cash Accounts Receivable Land Building Equipment Notes Payable Capital Stock Service Revenue Wage and Salary Expense Advertising Expense Utilities Expense Dividends $ 9,980 8,640 80,000 50,000 23,500 $ 75,300 90,000 50,340 23,700 4,600 8,420 5,000 $220,640 Totals