The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance December 31 Account Title Cash Prepaid insurance Notes receivable (due in 5 years) Buildings Accumulated depreciation-Buildings Accounts payable Notes payable (due in 3 years) Common stock Retained earnings Dividends Consulting revenue Wages expense Depreciation expense-Buildings Insurance expense Totals Debit $ 13,000 900 4,800 40,000 3,000 3,900 4,000 1,900 $ 71,500 Credit $ 16,000 4,500 5,000 10,000 6,500 29,500 $ 71,500 (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 $6,500 on December 31 of the prior year.
The following is the adjusted trial balance of Sierra Company. Sierra Company Adjusted Trial Balance December 31 Account Title Cash Prepaid insurance Notes receivable (due in 5 years) Buildings Accumulated depreciation-Buildings Accounts payable Notes payable (due in 3 years) Common stock Retained earnings Dividends Consulting revenue Wages expense Depreciation expense-Buildings Insurance expense Totals Debit $ 13,000 900 4,800 40,000 3,000 3,900 4,000 1,900 $ 71,500 Credit $ 16,000 4,500 5,000 10,000 6,500 29,500 $ 71,500 (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 $6,500 on December 31 of the prior year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following is the adjusted trial balance of Sierra Company.
Sierra Company
Adjusted Trial Balance
December 31
Account Title
Cash
Prepaid insurance
Notes receivable (due in 5 years)
Buildings
Accumulated depreciation-Buildings
Accounts payable
Notes payable (due in 3 years)
Common stock
Retained earnings
Dividends
Consulting revenue
Wages expense
Depreciation expense-Buildings
Insurance expense
Totals
Required 1
Debit
$ 13,000
900
4,800
40,000
Required 2
3,000
SIERRA COMPANY
Income Statement
Credit
(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 $6,500 on December 31 of the prior year.
$ 16,000
4,500
5,000
10,000
6,500
Complete this question by entering your answers in the tabs below.
Prepare an income statement for the year ended December 31.
29,500
3,900
4,000
1,900
$ 71,500 $ 71,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98d171d6-398e-4ee3-97be-b821047cbe34%2F335907c6-bf81-4cb1-8b1b-15245e5921d9%2F1gdf5jd_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Prepaid insurance
Notes receivable (due in 5 years)
Buildings
Accumulated depreciation-Buildings
Accounts payable
Notes payable (due in 3 years)
Common stock
Retained earnings
Dividends
Consulting revenue
Wages expense
Depreciation expense-Buildings
Insurance expense
Totals
Required 1
Debit
$ 13,000
900
4,800
40,000
Required 2
3,000
SIERRA COMPANY
Income Statement
Credit
(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 $6,500 on December 31 of the prior year.
$ 16,000
4,500
5,000
10,000
6,500
Complete this question by entering your answers in the tabs below.
Prepare an income statement for the year ended December 31.
29,500
3,900
4,000
1,900
$ 71,500 $ 71,500
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