MC JOUW NUMMtion applies to the questions displayed below.] The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, Year 2, before the closing entries were recorded. Consulting revenue Cash Cash received from common stock issued during Year 2 Travel expense Dividends Cash flow from investing activities Rent expense Payment to reduce debt principal Retained earnings, January 1, Year 2 Salary expense Cash flow from operating activities Common stock, December 31, Year 2 Other operating expenses $ 10, 200 8,800 3,500 700 1,100 2,900 1,050 22,000 14,500 2,800 2,000 11,900 1,700 Required a. Prepare the income statement Nowell would include in its Year 2 annual report. Cash flow from operating activities Common stock, December 31, Year 2 Other operating expenses 2,000 11,900 1,700 Required a. Prepare the income statement Nowell would include in its Year 2 annual report. Income Statement For the Year Ended December 31, Year 2 Accounts receivable $ 10,200 Expenses Cash $ 8,800 Travel expense 700 Rent expense 1,050 Salary expense 14,500 Other operating expenses 1,700 Total expenses 26,750 Net income $ (16,550) Required information [The following information applies to the questions displayed below.] The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, Year 2, before the closing entries were recorded. Consulting revenue Cash Cash received from common stock issued during Year 2 Travel expense Dividends Cash flow from investing activities Rent expense Payment to reduce debt principal Retained earnings, January 1, Year 2 Salary expense Cash flow from operating activities Common stock, December 31, Year 2 Other operating expenses $ 10, 200 8,800 3,500 700 1,100 2,900 1,050 22,000 14,500 2,800 2,000 11,900 1,700 b. Identify the accounts that should be closed to the Retained Earnings account. (Select all that apply.) Consulting revenue Cash received from common stock issued during Year 2 Travel expense Dividends Cash flow from investing activities Rent expense Payment to reduce debt principal Retained earnings, January 1, Year 2 Salary expense Cash flow from operating activities Common stock, December 31, Year 2 Other operating expenses 3,500 700 1,100 2,900 1,050 22,000 14,500 2,800 2,000 11,900 1,700 b. Identify the accounts that should be closed to the Retained Earnings account. (Select all that apply.) Consulting revenue Land Travel expense Notes payable Dividends Cash Rent expense Salary expense Other operating expense The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, Year 2, before the closing entries were recorded. Consulting revenue Cash Cash received from common stock issued during Year 2 Travel expense Dividends Cash flow from investing activities Rent expense Payment to reduce debt principal Retained earnings, January 1, Year 2 Salary expense Cash flow from operating activities Common stock, December 31, Year 2 other operating expenses $10,200 8,800 3,500 700 1,100 2,900 1,050 22,000 14,500 2,800 2,000 11,900 1,700 c-1. Determine the Retained Earnings account balance at December 31, Year 2. Retained earnings -1. Determine the retained Earnings account balance at December 31, Year 2. Retained earnings c-2. Which of the following statement(s) is true? (Select all that apply.) Net income does not include revenue of the current year. Retained earnings does not include current year net income, but only the balance from previous years. Retained earnings not only includes current year net income, but also the balance from previous years and reductions for dividends. Retained earnings does not include the balance from previous years, but only the reductions for dividends. Net income only includes revenues and expenses for the current year