Gardner Architects is in the process of developing house plans for six custom homes. Work tickets show that during the month of January 200 hours of labor were used on plans for custom home Project Number 3 and 100 hours of labor were used on plans for custom home Project Number 5. Labor costs average $60 per hour and are paid with cash. The entry to record these labor costs would

have no effect on total assets, liabilities, or equity.

increase equity by $6,000.

increase total liabilities by $12,000.

increase total assets by $18,000..