Question

Use the starting balance sheet and the list of changes to create an updated balance sheet and to answer the question.

Hopewell Corporation Balance Sheet As of December 31, 2018 (amounts in thousands)
Cash	2,900	Liabilities	2,400
Other Assets	3,700	Equity	4,200
Total Assets	6,600	Total Liabilities & Equity	6,600

Between January 1 and March 31, 2019:

1. Cash decreases by $300,000
2. Liabilities increase by $400,000
3. Equity decreases by $200,000

What is the value for Other Assets on March 31, 2019?

Please specify your answer in the same units as the balance sheet.

Answer 1

Solution:

Inregards to the information mentioned in the question following the value of other assets on March 31,2019

Effect of transactions between Jan 1 and March 31,2019

1. Cash decreases by $300,000-

Cash = 2900-300=2600
2. Liabilities increase by $400,000

Liabilities = 2400+400=2800
3. Equity decreases by $200,000

Equity = 4200-200=4000

Hopewell Corporation Balance Sheet As of March 31, 2019 (amounts in thousands)
Cash	2600	Liabilities	2,800
Other Assets	4200	Equity	4000
Total Assets	6,800	Total Liabilities & Equity	6 800

As s result of all the above transaction:

Value of Other Assets on March 31,2019

=Total Assets - Cash

= 6800-2600

=4200