I need clarification. When it comes to the end of the year ate balance sheets suppsoed to be zero'd put for current liabilities..

For example, this company has no long-term liabilities. The liabilities shown below are all of the liabilities throughout the entire year(utilities, vendors, etc) .Someone took a look at this and said that I needed to convert all of the current liabilities into assets because there are no liabilities left to be paid for the year and that doesn't make sense to me.

What is the proper way to close out liabilities on a balance sheet?

2016 2017 2018 2019 Balance Sheet December 31, 2016 Assets Current Assets Cash Accounts Recievable Inventory Supplies Total Current: 5,400 24,425.29 11,659 125 41,609.29 Long Term Assets PPE Total Assets 5,109 46,718.29 Liabilities Current Liabities Accounts Payable Total Liabilites 40,293.05 40,293.05 Owner's Equity The Magic Soul Capital 6,425.24 Total Laibiltes and Owner's Equity 46,718.29