The question is as follows.

Dec 31 2010
Assets = given
Liabilities = x

Dec 31 2011
Assets = Given
Liabilities = Given

During year 2011
Stock Issuance = Given
Net Income/Loss = Given
Dividends = Given.

I am having a hard time adapting the Equation to this situation. I know how to solve for almost all other situations here but I am having a really hard time balancing everything for the previous year's Liabilities. Any help would be great.

First you need to find equity at 31 Dec 2011. Assets - Liabilities = equity

Next take your equity at 31 Dec 2011 and subtract out your stock issuances and subtract out your net income and add your dividends to get equity at 31 Dec 2010.

Finally take your assets at 31 Dec 2010 and subtract out your equity at 31 Dec 2010 to get your liabilities at 31 Dec 2010.