<u>Answer</u> is C. net income of the period
A is wrong because withdrawals by owners would only reduce the credit and not add anything to it.
B is also wrong since debiting the retained earnings will also decrease the equity so it will result in a net loss for the company.
Answer is C since crediting the net earning implies that the organization earned some profit which would increase the equity.
D is wrong too because the initial investment does not go to the retained earnings.
Answer:
3000
1500
Explanation:
For each of the answers in this question I have added the formulas to solve them in the attachment below
1.
(45-39)*5*100
= 3000
2.
(45-39)-3 x5 x100
= $1500