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 $5,500 on December 31 of the prior year.

Account Title	Debit			Credit
Cash	$	5,000
Prepaid insurance		500
Notes receivable (due in 5 years)		4,000
Buildings		20,000
Accumulated depreciationBuildings				$	12,000
Accounts payable					2,500
Notes payable (due in 3 years)					3,000
Common stock					5,000
Retained earnings					5,500
Dividends		1,000
Consulting revenue					9,500
Wages expense		3,500
Depreciation expenseBuildings		2,000
Insurance expense		1,500
Totals	$	37,500		$	37,500

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.