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Following are the transactions of Scanlon Corporation, for the month of January. The effect of these transactions is not included in the begininng balances shown. Borrowed $33,800 from a local bank. Lent $13,800 to an affiliate; accepted a note due in one year. Sold to investors 100 additional shares of stock with a par value of $0.10 per share and a market price of $6 per share; received cash. Purchased $34,000 of equipment, paying $14,500 cash and signing a note for the rest due in one year. Declared $5,800 in cash dividends to stockholders, to be paid in February.
Problem 1: Prepare a balance sheet for Scanlon Corporation, as of January 31.
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