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 Debit $ 25,000 1,500 6,000 70,000 6,000 4,500 7,000 Credit $ 22,000 7,500 8,000 16,000 9,500 59,500 Insurance expense Totals 2,500 $ 122,500 $ 122,500 (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 $9,500 on December 31 of the prior year.