The following is the adjusted trial balance of Sierra Company. The Retained Earnings account balance was $13.500 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 $ 21,000 Credit 1,300 5,600 60,000 $ 20,000 6,500 7,000 9,000 13,500 5.000 49,500 4,300 6,000 2,300 $ 105,500 $ 105,500 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. 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 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 $ 21,000 1,300 5,600 60,000 $ 20,000 6,500 7,000 9,000 13,500 5,000 49,500 4,300 6,000 2,300 $ 105,500 $ 105,500 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a statement of retained earnings for the year ended December 31. Owner made no investments during the current period. SIERRA COMPANY Statement of Retained Earnings Retained eamings, December 31 prior year end