A & R Problem 1-3 For each of the following activities, identify the effect on each component of the income statement and bal ance sheet. The first one has been done as an example for you. 1. $14,000 of services were provided to clients on credit today. Balance Sheet Liabilities Income Statement Revenues Expenses $14,000 Assets $14,000 Equity $14,000 2. $5,000 cash was collected for services performed on credit last month. 2. $25,000 cash was borrowed from the bank.inc cashr ine note payable 4. $500 of advertising was done in the local newspaper today on account. 5. $500 was paid regarding the advertising in (4) above. 6. The owner invested an additional $10,000 cash into the business. 7. The owner withdrew $5,000 of cash from the business. a. The owner took $200 worth of office supplies home for personal use. 9. A new computer was purchased for $2,000 cash. 10. A one-year insurance policy costing $12,000 was purchased today. 11. Purchased $45 of fuel for the van; paid cash. 12. Collected $900 from a client for work performed today