Partially Correct Your answer is incorrect. Stewart Company records this week's salary expense for their only employee, $1,200. However, the amount will not actually be paid to the employee until the first of next month. Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account? Check all that apply. An asset account increases A liability account increases Capital Stock Increases Retained Earnings increase An asset account decreases A liability account decreases Capital Stock decreases Retained Earnings decrease X $