Randolf and Tenisa plan to go to a business conference in Shanghai and then on to Macao for a week of vacation. The flight for two and the conference in Shanghai costs $20,000. The flight to Macao and the hotel expenses in Macao cost an additional $5,000. All of the expenses for the trip were charged to the company's account. Which of the following changes to Comfy Home's financial statements is correct?

1. 1)Decrease owners' equity by $25,000; decrease cash by $25,000.
2. 2)Decrease owners' equity by $20,000; decrease cash by $20,000.
3. 3)Increase other assets by $5,000; decrease owners' equity by $20,000; decrease cash by $25,000.