! Required information [The following information applies to the questions displayed below.] The following is the adjusted trial balance of Sierra Company. The Retained Earnings account balance was $15,500 on December 31 of the prior year. Account Title Cash Debit $ 25,000 Credit 56 Prepaid insurance Notes receivable (due in 5 years). Buildings 1,500 6,000 70,000 Accumulated depreciation-Buildings $ 22,000 Accounts payable- 7,500 Notes payable (due in 3 years) Common stock 8,000 10,000 Retained earnings 15,500 Dividends 6,000 Consulting revenue 59,500 inces Wages expense 4,500 Depreciation expense-Buildings) Insurance expense Totals: 7,000 2,500 $122,500. $ 122,500 Required: (1) Prepare an income statement for the year ended December 31. (2) Prepare a statement of retained earnings for the year ended December 31. Complete this question by entering your answers in the tabs below.