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Use the following information for Quick Studies below. $($Algo$)$

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The following is the adjusted trial balance of Sierra Company.

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 $$8,500$ on December $31$ of the prior year.