Chocolate Supreme Sweet Shop was looking to update the interior of its shop and recently had some painting work done. The expense for the painting totaled $4,000. Chocolate supreme paid $1,000 to the painter and then the painter agreed she would send a bill for the remaining $3,000, to be paid in 30 days. As a result of this transaction, in terms of the accounting equation for Chocolate Supreme,

Chocolate Supreme Sweet Shop was looking to update the interior of its shop and recently had some painting work done. The expense for the painting totaled $4,000. Chocolate supreme paid $1,000 to the painter and then the painter agreed she would send a bill for the remaining $3,000, to be paid in 30 days. As a result of this transaction, in terms of the accounting equation for Chocolate Supreme,

total assets will decrease by $1,000, total liabilities will decrease by $3,000, and total stockholders' equity will decrease by $4,000.

total assets will decrease by $4,000 and total stockholders' equity will decrease by $4,000.

there will be no change to the accounting equation because total assets will both increase and decrease by the same amount.

total assets will decrease by $1,000, total liabilities will increase by $3,000, and total stockholders' equity will decrease by $4,000.