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, 2018, before the closing entries were recorded.

Consulting revenue $ 10,100 Cash 7,600 Cash received from common stock issued during 2017 3,400 Travel expense 600 Dividends 1,300 Cash flow from investing activities 2,500 Rent expense 1,900 Payment to reduce debt principal 21,600 Retained earnings, January 1, 2018 14,300 Salary expense 3,300 Cash flow from operating activities 2,050 Common stock, December 31, 2018 11,800 Other operating expenses 1,700

Prepare the income statement Nowell would include in its 2018 annual report.

Identify the accounts that should be closed to the Retained Earnings account. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Consulting revenue. Supplies expense. Travel expense. salaries payable. dividends. cash. rent expense. salary expense. other operating expense.

Determine the Retained Earnings account balance at December 31, 2018.

Which of the following statement(s) is true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 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. Net income only includes revenues and expenses for the current year.