Required information [The following information applies to the questions displayed below.] The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance December 31 Account Title Cashi Prepaid insurance Notes receivable (due in 5 years) Buildings Accumulated depreciation-Buildings Accounts payable Notes payable (due in 3 years) Common stock Retained earnings Dividends Consulting revenue: Wages expense Depreciation expense-Buildings Insurance expense Totals Debit Credit $ 45,000 2,500 8,000 120,000 $ 32,000 12,500 13,000 26,000 14,500 11,000 109,500 5,500 12,000 3,500 $207,500 $207,500 (1) Prepare an income statement for the year ended December 31. (2) Prepare a statement of retained earnings for the year ended December 31. The Retained earnings account balance was $14,500 on December 31 of the prior year. Complete this question by entering your answers in the tabs below.