On December $1,$ Year $1,$ Jack's Snow Removal Company received $$6,000$ of cash in advance from a customer and promised to provide services for that customer during the months of December, January, and February. How will the Year $1$ year$-$end adjustment to recognize the partial expiration of the contract impact the elements of the financial statements model?

Multiple Choice

Total assets will increase by $$2,000.$

Equity will increase by $$2,000.$

Total liabilities will increase by $$2,000.$

Total assets will increase by $$2,000$ and equity will increase by $$2,000.$