The Detection of Errors in a Trial Balance and Preparation of a Corrected Trial Balance Malcolm Inc. was incorporated on January 1 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.: Trial Balance January 31 Account Titles Debits Credits Cash $ 9,980 Accounts Receivable 8,640 Land 80,000 50,000 23,500 Building Equipment Notes Payable Capital Stock $ 75,300 90,000 50,340 23,700 Service Revenue Wage and Salary Expense Advertising Expense Utilities Expense Dividends 4,600 8,420 5,000 Totals $208,840 $220,640 Required: 1. Identify the two errors in the trial balance. Ignore depreciation expense and interest expense. a. Dividend account is showing debit balance. b. The balance in the notes payable should be equal to the balance in Building and equipment account. c. The capital stock account should show a debit balance. d. The cash balance should be equal to the balance in the service revenue account. bandcX 2. Prepare a corrected trial balance. If an amount box does not require an entry, leave it blank. Malcolm Inc. Revised Trial Balance January 31 Debits Credits Cash 50,340 X $ 0 Accounts receivable 8,640 0 Land 80,000 0 Building 50,000 0 Equipment 23,500 X 0 Notes payable 0 130,000 x Capital stock 0 90,000 Service revenue 0 50,340 Wage and salary expense 16,140 0 Advertising expense 23,700 X 0 Utilities expense 4,600 X 0 Dividends 5,000 0 Totals 270,340 X 270,340