the question is What is the amount of equity on December 31 and what is the amount of liabilities on December 31

Diagram

December 31
Assets .........................58,000
Liabilites ...................... ?

During the Year
Owner investments ........... 6,000
Net Income ...................... 8,500
Owner Case Withdrawls .... 3,500

I have to find the equity and the liabilites and I am not for sure how to go about doing that could some one help and explain the steps thanks

CaptainForest

Assets = Liabilities + Owner’s Equity

Therefore since ending Assets are 58,000, we know that Liabilities + Owner’s Equity must total 58,000

If the owner has invested 6,000, Plus a Net Income of 8,600, Less what he took out of 3,500…………Then Owner’s Equity is:

Owner’s Equity = 6,000 + 8,600 – 3,500 = 11,100

Therefore, Liabilities must be 58,000 – 11,100 = 46,900