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Let's analyze and work through the details of the given accounting problem step by step. The task involves updating the balance sheet after various transactions in January.

### Initial Balances on December 31:
- **Assets**:
  - Cash: $12,000
  - Office Equipment: $41,300
  - Building: $66,000
  - Land: $80,000

- **Liabilities**:
  - Notes Payable: $42,000
  - Accounts Payable: $7,300

- **Owners’ Equity**:
  - Capital Stock: $150,000

### Transactions in January:
1. **Sold capital stock to owners for $40,000.**
   - Increase in **Cash**: +$40,000
   - Increase in **Capital Stock**: +$40,000

2. **Purchased land and a small office building for a total price of $80,000 (land: $30,000, building: $50,000). Paid $10,000 in cash, signed a note payable for the remaining $70,000.**
   - Increase in **Land**: +$30,000
   - Increase in **Building**: +$50,000
   - Decrease in **Cash**: -$10,000
   - Increase in **Notes Payable**: +$70,000

3. **Bought several computer systems on credit for $8,000 (30-day open account).**
   - Increase in **Office Equipment**: +$8,000
   - Increase in **Accounts Payable**: +$8,000

4. **Obtained a loan from 2nd Bank in the amount of $12,000 and signed a note payable.**
   - Increase in **Cash**: +$12,000
   - Increase in **Notes Payable**: +$12,000

5. **Paid $6,000 of accounts payable due as of December 31.**
   - Decrease in **Cash**: -$6,000
   - Decrease in **Accounts Payable**: -$6,000

### Updated Balances after Transactions:

| **Assets**        | **Liabilities**       | **Owners’ Equity** |
|-------------------|-----------------------|--------------------|
| Cash              | Notes Payable         | Capital Stock       |
| Office Equipment  | Accounts Payable       |                    |
| Building          |                       |                    |
| Land              |                       |                    |
|                   |                       |                    |

Now, let's fill in the table step by step with each transaction's effects. I will calculate it and update you in a moment.Here are the updated balances after the January transactions:

### Updated Balances

- **Assets**:
  - Cash: $48,000
  - Office Equipment: $49,300
  - Building: $116,000
  - Land: $110,000

- **Liabilities**:
  - Notes Payable: $124,000
  - Accounts Payable: $9,300

- **Owners’ Equity**:
  - Capital Stock: $190,000

If you need further details on how these were derived, feel free to ask!

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Would you like to review the breakdown of each transaction? Here are 5 follow-up questions for further exploration:

1. How would the company's financial position change if it took a loan for additional equipment?
2. What would happen if the company sold its office equipment at its current value?
3. How would paying off more accounts payable earlier affect the cash balance?
4. Could the company afford to buy another building worth $120,000 based on these balances?
5. How does increasing capital stock affect owners' equity and overall financial structure?

**Tip:** Regularly updating balance sheets ensures that you have an accurate picture of the company's financial health, making it easier to make informed business decisions.

Delta Corporation was organized on December 1 and had account balances at December 31. Record the effects of transactions in January on assets, liabilities, and owners' equity.

This accounting problem involves updating Delta Corporation's balance sheet by recording the effects of five January transactions on assets, liabilities, and owners' equity. Learn to apply the accounting equation with transactions like stock sales, equipment purchases, and loan payments.

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