Geneva Jordan opened a new business on December 1, 2016 with various assets including $3,950 in cash, $26,200 in equipment, $1,250 in supplies, and $6,000 in prepaid rent for a total of $37,400 in assets. The business had $1,100 in accounts payable, $15,500 in loans payable for total liabilities of $16,600. Completing the accounting equation, the owner's equity was $37,400 - $16,600 = $20,800.