December 31, 2011
Assets 34,000
Liabilities ?
During year 2011
Stock issuances 6,000
Net income (loss) 7,220
Cash dividends 3,500


- What is the equity?

- What is the liability?

You need the information for year 2010.

You will have to calculate equity for 2010, which will be assets minus liabilities.

Once you have Equity for 2010 you will add stock issuances and net income, then subtract cash dividends to get your equity for 2011.

Now take your assets for 2011 and subtract your equity for 2011 to get your liabilities for 2011.