Notes Required information Use the following information for Quick Studies below. (Algo) (The following information applies to the questions displayed below. The following is the adjusted trial balance of Sierra Company. The Retained Earnings account balance was $20,500 on December 31 of the prior year. Account Title Debit Credit Cash $ 35,000 Prepaid insurance 2,000 Notes receivable (due in 5 years) 7,000 Buildings 95,000 Accumulated depreciation-Buildings $ 27,000 10,000 payable (due in 3 years) 10,500 Common stock 12,500 Retained earnings 20,500 Dividends 8,500 Consulting revenue 84,500 Wages expense 5,000 Depreciation expense-Buildings 9,500 Insurance expense 3,000 Totals $165,000 $165,000 QS 3-22 (Algo) Preparing financial statements LO P5 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 Total revenue Total expense 0 0 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 earnings, December 31 prior year end 0 Retained earnings, December 31 current year end $ 0