Problem 2-34A (Algo) Closing the accounts LO 2-4, 2-8 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 1 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 $ 9,900 8,900 3,200 550 800 2,800 1,050 22,600 14,600 2,900 2,700 8,900 1,900 Required a. Prepare the income statement Nowell would include in its Year 2 annual report. b. Identify the accounts that should be closed to the Retained Earnings account. c-1. Determine the Retained Earnings account balance at December 31, Year 2. c-2. Which of the following statement(s) is true? Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Reg C2 Prepare the income statement Nowell would include in its Year 2 annual report. NOWELL COMPANY Income Statement For the Year Ended December 31, Year 2 Expenses Total expenses Reg ReqB > Complete this question by entering your answers in the tabs below. Req A Req B Reg C1 Reg C2 Identify the accounts that should be closed to the Retained Earnings account. (Select All That Apply.) Salaries payable Consulting revenue Dividends Supplies expense Cash Travel expense Rent expense Salary expense Other operating expense ( ReqA ReqC1 > Complete this question by entering your answers in the tabs below. Req A Reg B Reg C1 Req c2 Determine the Retained Earnings account balance at December 31, Year 2. Retained earnings