Required information Use the following information for Quick Studies below. 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 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 Credit $ 5,000 500 4,000 20,000 $12,000 2.500 3,000 5,000 5,500 1,000 9,500 3,500 2,000 1,500 $37,500 $37,500 QS 3-22 Preparing financial statements LO P6 Required (1) Prepare an income statement for the year ended December 31. 121 Prepare a statement of retained earnings for the year ended December 31 Required information 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. Required 1 Required 2 Prepare an income statement for the year ended December 31. SIERRA COMPANY Income Statement Total revenue Total expense Required 2 > Required information (4) Prepare a statement or retained earnings or the year ended December 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a statemept of retained earnings for the year ended December 31. Owner made no investments during the current period. SIERRA COMPANY Statement of Retained Earnings Retained earnings, December 31 prior year end Retained earnings, December 31 current year end