Use the following adjusted trial balance of Sierra Company to prepare its

(1) Income statement

(2) Statement of owner’s equity for the year ended December 31. The H. Sierra, Capital account balance was $10,500 on December 31 of the prior year.

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Account Title Deblt Credit $ 5,000 Cash Prepaid insurance Notes receivable (due in 5 years) Buildings Accumulated depreciation-Buildings Accounts payable Notes payable (due in 3 years) H. Sierra, Capital H. Sierra, Withdrawals Consulting revenue Wages expense Depreciation expense-Buildings 500 4,000 20,000 $12,000 2,500 3,000 10,500 1,000 9,500 3,500 2,000 Insurance expense 1,500 $37,500 $37,500 Totals