Exercise 1. The following trial balance of Brian's Pickle Co for June 30, 2010 does not balance. Cash $ 21,860 Accounts receivable 35.000 Supplies 3,640 Building 51.000 $15,500 Note payable Owner's equity 30,000 Retained earnings 10,000 Revenue 39,500 Expenses 25,000 Total $136,500 $95,000 . The following errors were discovered: A purchase of supplies for cash was posted as S40 when it should have been $400. The first two numbers of the amount for notes payable were transposed while being copied from the account balance to the trial balance. The correct amount of Notes Payable should be $51.500. A collection of cash was debited to the cash account in the amount of $5.500 but was not credited to the Revenue account. A purchase of supplies for $725 on account was not recorded. Instructions: Prepare a corrected trial balance Exercise 2. In January 2013, Andrew Wiles organized a service corporation. The company called Services Co, began operations immediately. Transactions during the month of January were as follows: January 1 The corporation issued shares of capital amounting to $100,000 in exchange for cash January 2 Purchased an equipment from ABC company for $150,000. Made a $50,000 cash dowo payment and issued a note payable for the remaining balance January 4 Paid rent expenses for the month amounting to 53000 January 12 Billed customers 515.200 for services rendered January 15 Paid an advance payment of 524,000 for the 1-year insurance policy January 20 Collected 57,300 of the amounts billed to customers on January 12. January 25 Received advance payment from customers of $15,000 January 31 Paid $8,000 salaries earned by employees in January January 31 Paid off S 10.000 of the outstanding amount of the Notes Payable isted on January 2 Adjusting entries: 1. Interest expense of S 1000 was accrued on Notes Payable issued on January 2. 2. Depreciation on equipment is based on 10-year useful life. The straight line method of depreciation is used 3. Received invoice from advertising company for the payment of $500 advertising expenses 4. Salaries accrued but not paid totaled to S1200 SAs of the end of January, Services Company earned $3.500 of the advance payment received from customers on January 25, 6. Unrecorded income tax expense acerued in January amounted to $400. 7. Insurance expense was recorded for the half month period Instructions: a) Prepare journal entries for each transaction b) Prepare adjusting entries c) Post entries to the Ledger accounts using T account format d) Prepare the Adjusted Trial Balance