Use the following information for Quick Studies below. (Algo)Skip to question [The following information applies to the questions displayed below.]The following is the adjusted trial balance of Sierra Company. Sierra CompanyAdjusted Trial BalanceDecember 31Account TitleDebitCreditCash$ 45,000 Prepaid insurance2,500 Notes receivable (due in 5 years)8,000 Buildings120,000 Accumulated depreciation—Buildings $ 32,000Accounts payable 12,500Notes payable (due in 3 years) 13,000Common stock 26,000Retained earnings 14,500Dividends11,000 Consulting revenue 109,500Wages expense5,500 Depreciation expense—Buildings12,000 Insurance expense3,500 Totals$ 207,500$ 207,500 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 $14,500 on December 31 of the prior year.

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Description: Use the following information for Quick Studies below. (Algo)Skip to question [The following information applies to the questions displayed below.]The following is the adjusted trial balance of Sierra Company. Sierra CompanyAdjusted Trial BalanceDece

Ans. Income statement depicts the profit gained after deduction of expenses from revenue.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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.

Account Title	Debit	Credit
Sierra Company
Adjusted Trial Balance
December 31
Cash	$ 45,000
Prepaid insurance	2,500
Notes receivable (due in 5 years)	8,000
Buildings	120,000
Accumulated depreciation—Buildings		$ 32,000
Accounts payable		12,500
Notes payable (due in 3 years)		13,000
Common stock		26,000
Retained earnings		14,500
Dividends	11,000
Consulting revenue		109,500
Wages expense	5,500
Depreciation expense—Buildings	12,000
Insurance expense	3,500
Totals	$ 207,500	$ 207,500

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 $14,500 on December 31 of the prior year.

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