On this exercise I need to prepare a classified balance sheet and identify owners equity.
Accounts payable 74,300, Accounts receivable 113,500, Buildings 512,000, Owners Equity 314,300, Cash 153,600, Distibution to owners 49,100, Supplies 4,200, land 90,000, Mortgage payable 423,400, Net Income for 2009 109,450, OWNERS EQUITY?? (12/31/09).

Question, Do I need to separate all the assets and Liabilities and to have the owners equity subtract 109,450- 49,100?

Do what you are asked to do.
Let us see your effort.
Do not forget you had an opening balance
In OWNERS equity.

Here's an example of a classified balance sheet but it's a bit more complicated than what you've got:
Principles of Accounting Chapter 4 (http://www.principlesofaccounting.com/chapter%204.htm#Classified%20balance%20sheets)
Do you not have an example in you text?