The following is the adjusted trial balance of Sierra Company.

Sierra Company

Adjusted Trial Balance

December $31$

Account Title Debit Credit

Cash $ $11,000$

Prepaid insurance $800$

Notes receivable $($due in $5$ years$)4,600$

Buildings $35,000$

Accumulated depreciation$$Buildings $ $15,000$

Accounts payable $4,000$

Notes payable $($due in $3$ years$)4,500$

Common stock $9,000$

Retained earnings $6,000$

Dividends $2,500$

Consulting revenue $24,500$

Wages expense $3,800$

Depreciation expense$$Buildings $3,500$

Insurance expense $1,800$

Totals $ $63,000$ $ $63,000$

QS $3-30($Algo$)$ Preparing an income statement & statement of retained earnings LO C$2$

$(1)$ 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 $$6,000$ on December $31$ of the prior year.