If on January 1, 2005, Kay Mark Company paid $100 of its accounts payable in cash, what would be the effect on the accounting equation? A) Assets, $100 increase; liabilities, no effect; owner's equity, $100 increase. B) Assets, $100 decrease; liabilities, $100 decrease; owner's equity, no effect. C) Assets, $100 decrease; liabilities, $100 increase; owner's equity, $200 decrease. D) Assets, no effect; liabilities, $100 decrease; owner's equity, $100 increase