The following is the adjusted trial balance of Sierra Company. S 3-30 (Algo) Preparing an income statement \& statement of retained earnings LO C2 Prepare an income statement for the year ended December 31. ) Prepare a statement of retained earnings for the year ended December 31. The Retained earnings account balance was $7,000 on ecember 31 of the prior year. Prepare an income statement for the year ended December 31. Prepare a statement of retained earnings for the year ended December 31 . The Retained earnings account balance was $7,000 on December 31 of the prior year