Chapter 2, Question 1 a. The restaurant started with a $1,200,000 check from its owner. Assets = Liabilities + Owners' Equity Revenue - Expenses 1,200,000 1,200,000 b. The restaurant generated revenues of $5,000 on accounts receivable. Assets = Liabilities + Owners' Equity Revenue - Expenses 5,000 5,000 c. The restaurant purchased a $400,000 building with $40,000 cash and a $360,000 mortgage. Assets = Liabilities + Owners' Equity Revenue - Expenses 400,000 360,000 40,000 d. The restaurant paid $550 cash for the utilities bill. Assets = Liabilities + Owners' Equity Revenue - Expenses