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 $18,500 on December 31 of the prior year. Account Title. Debit Credit Cash $31,000 Prepaid insurance 1,800 Notes receivable (due in 5 years) 6,600 Buildings 85,000 Accumulated depreciation-Buildings $ 25,000 Accounts payable 9,000 Notes payable (due in 3 years) 9,500 Common stock 11,500 Dividends Retained earnings Consulting revenue. Wages expense Depreciation expense-Buildings Insurance expense Totals 18,500 7,500 74,500 4,800 8,500 2,800 $148,000 $148,000 QS 3-22 (Algo) Preparing financial statements LO P5 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. Complete this question by entering your answers in the tabs below. QS 3-22 (Algo) Preparing financial statements LO P5 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. 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 ok QS 3-22 (Algo) Preparing financial statements LO P5 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. Complete this question by entering your answers in the tabs below. nces 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 $