What effects would the accrual of $$160$ of interest on a note payable have on financial statements?

I Balance sheet: Liabilities are decreased by $$160$

II Income statement:

Expenses are increased by $$160$

III Balance sheet:

Retained earnings are decreased by $$160$

IV Balance sheet:

Cash assets are decreased by $$160$

$$ Balance sheet:

Liabilities are increased by $$160$