The followingProblem $2-34$A $($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. 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 B Req C$1$ Req C$2$ Prepare the income statement Nowell would include in its Year $2$ annual report.Complete this question by entering your answers in the tabs below.Complete this question by entering your answers in the tabs below. Req B Req C$1$ Determine the Retained Earnings account balance at December $31,$ Year $2.$ Retained earningsComplete this question by entering your answers in the tabs below. 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 $ $9,500$ Cash $7,600$ Cash received from common stock issued during Year $13,900$ Travel expense $800$ Dividends $1,600$ Cash flow from investing activities $2,500$ Rent expense $1,600$ Payment to reduce debt principal $15,500$ Retained earnings, January $1,$ Year $214,000$ Salary expense $2,800$ Cash flow from operating activities $2,700$ Common stock, December $31,$ Year $28,000$ Other operating expenses $2,400$