its employees last month. What are On December 10, Jones Co. paid employee salaries of $27,000 owed to the effects of this transaction on the accounting equation? O a) Expenses increase and liabilities increase. b) Assets decrease and liabilities decrease. c) Assets decrease and expenses decrease. d) Expenses decrease and liabilities decrease. The ending Retained Earnings balance of Clayton Corporation increased by $3.2 million from the beginning of the year. The company declared a dividend of $1.3 million during the year. What was the amount of net income during the year? 0 a) $4.5 million b) S3.2 million. c) $1.9 million d) $1.3 million