Required information Problem 2-38A Closing the accounts LO2-4 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 $10,100 8,100 3, 800 800 1,300 2,300 1,150 24,500 14,700 2,600 2,800 11,800 2,100 Problem 2-38A Part a Requirec a. Prepare the income statement Nowell would include in its Year 2 annual report. Answer is complete but not entirely correct. Income Statement For the Year Ended December 31, Year 2 $ 10,100 Consulting revenue Expenses Travel expense Rent expense Salary expense Supplies expense Other operating expenses 2,600 24,500 2,100 Total expenses 31,150 Net income 21,050