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 Cash 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 $ 7,000 600 4,200 25,000 1,500 3,600 2,500 1,600 $ 46,000 Credit $ 13,000 3,000 3,500 7,000 5,000 14,500 $ 46,000 (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 $5,000 on December 31 of the prior year.

Required information [The following information applies to the questions displayed below.] The following is the adjusted trial balance of Sierra Company. (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 $5,000 on December 31 of the prior year