Jacobs Company issued bonds with a $$300,000$ face value on January $1,$ Year $1.$ The bonds were issued at $102$ and carried a $5-$year term to maturity. They had a $9\%$ stated rate of interest that was payable in cash on December $31$st of each year. Jacobs uses the straight$-$line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year $1$ affect the company$$s accounting equation?