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. 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 Earnines account. e. Determine the Retained Earnines account balance at December 31. Year 2. Identify the reasons for the difference between net income and the endine balance in Retained Earnines. d. What are the balances in the Revenue, Expense, and Dividend accounts on January 1. Year 3? Explain