explain why each is incorrect/correct

6. On December 31st, 2014, Paper Plane Company had a debit balance of $2,000 in Retained Earnings. On December 31st, 2015, the Retained Earnings account had a credit balance of $1,000. Which of the following could have happened during 2015? A. Paper Plane had a net loss of $3,000 and paid no dividends. B. Paper Plane had a net loss of $1,500 but raised $4,500 capital by issuing additional common stock C. Paper Plane had net income of $1,000, and this was the only thing that impacted retained earnings. Paper Plane had a net income of $3,500 and paid $500 in dividends This is an impossible situation because Retained Earnings account can never have a debit balance D. E.