During $2022,$ Baltic Company incurred operating expenses amounting to $$185,000,$ of which $$130,000$ was paid in cash; the balance will be paid during $2023.$ Which of the following is correct for the $2022$ year$-$end balance sheet?

Multiple Choice

Assets decrease $$185,000,$ liabilities increase $$55,000,$ and stockholders' equity decreases $$185,000.$

Assets decrease $$185,000$ and stockholders' equity decreases $$185,000.$

Stockholders' equity decreases $$185,000,$ assets decrease $$130,000,$ and liabilities increase $$55,000.$

Stockholders' equity decreases $$130,000$ and assets decrease $$130,000.$