December 31, 2010
Assets... 123,000
Liabilities..

December 21,2011
Assets... 112,500
Liabilities... 75,000

During year 2011
Owner Investments... 4,500
Net income (loss)... 18,000
Owner cash withdrawals.9,000

I have to calculate the amount of liabilities on December 31, 2010

questions like this have been answered many times. Assets - Liabilities = Equity. Equity is like inventory; opening plus/minus transactions = closing

I still don't understand. I know the equation assets-liabilities= equity. But I don't know how to do it with just the asset.

I am still confused on how you calculate the liabilities for the previous year even though I know the equation, it is not working out. I believe 2011 equity = 105,000. Then the investments plus net income minus withdrawals = 13,500. If you take 105,000-13,500 you get 91,500. My computer says this is not the right answer. What am I doing wrong?

Don't know where you got your numbers, You just count back

equity 2011 112500-75000=37500
Movement in equity +4,500-18,000-9,000=-22500
equity 2010 37500+22500 = 60000
assets 123000 -?????????????= equity 60000

get a new calculator