I want to understand how to calculate for these things when missing figures are in the problem. I want more than the answer please (but an understanding of how you derived at this information. Any help is greatly appreciated.

Total Assets 12/31/2010: ?
Total Liabilities 12/31/2010:$80000
Paid-in capital 12/31/2010: $$55,000
Retained earnings 12/31/2010: ?
Net Income for 2010: $68000
Dividends declared and paid during 2010: $12,000
Retained Earnings 1/1/2010: $50,000

For Retained Earnings simply take your Net Income minus Dividends and add this amount to your beginning Retained Earnings to get your ending Retained Earnings.

For Owners Equity simply take your ending Paid-in Capital and add your ending Retained Earnings to get your ending Owners Equity.

For your ending Assets simply take your Ending Liabilities and add your ending Owners Equity together.