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. Sierra Company Adjusted Trial Balance December 31 Account Title Cash Debit Credit $ 7,000 Prepaid insurance Notes receivable (due in 5 years) Buildings Accumulated depreciation-Buildings Accounts payable Notes payable (due in 3 years) 600 4,200 25,000 $ 13,000 3,000 3,500 Common stock 7,000 Retained earnings 5,000 Dividends 1,500 Consulting revenue 14,500 Wages expense 3,600 Depreciation expense-Buildings 2,500 Insurance expense 1,600 Totals $ 46,000 $ 46,000 QS 3-30 (Algo) Preparing an income statement & statement of retained earnings LO C2 (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 $5,000 on December 31 of the prior year.