The following is the adjusted trial balance of Sierra Company, 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 revenge Wages expense Depreciation expense-Buildings Insurance expense Totals Debit Credit $ 25,000 1.500 6.000 70,000 5 22,000 7,500 8,000 10.000 15,500 6.000 59,500 4.500 7,000 2.500 $122,500 $122,500 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, Prepare an income statement for the year ended December 31. SIERRA COMPANY Income Statement Total revenue Total expense 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 earnings, December 31 prior year end Retained earnings, December 31 current year end