Cathy Company operates a cleaning service. The grid below is a list of possible effects on the Income Statement and the Balance Sheet. The code is: += increase; --= decrease; NE = no effect. Revenue Expense Net Income Assets Liabilities Equity 1. NE +500 -500 NE +500 -500 II. NE +500 -500 -500 NE -500 III. NE NE NE -500 -500 NE IV. NE +500 -500 -500 -500 NE V. NE NE NE +500 +500 NE Match the effect that the transaction below would have on Cathy Company's Income Statement and Balance Sheet. Choose (I), (II), (III), (IV), or (V) from the grid. For example, if the transaction were "Paid $500 due on accounts payable," the correct answer would be (III) because there is no effect on revenue, expense, and net income; a $500 decrease in assets and liabilities; and no effect on equity. Transaction: The Company purchased $500 of supplies on account. IV V