Question 1: Preparing financial statements: Use the following information to create an income statement, a statement of retained earnings and a classified balance sheet in the correct format for Dubai Company for the year ended December 31, 2017. What can you say about this company from looking at the financial statements?

Buildings	$125,800
Accounts Receivable	14,000
Allowance for doubtful accounts	1,400
Prepaid insurance	3,200
Cash	21,840
Equipment	72,400
Land	50,200
Insurance expense	1,780
Depreciation expense	5,300
Interest expense	2,600
Long term stock investment	10,000
Common Stock	72,000
Retained earnings (Jan 1, 2017)	42,000
Franchise rights	14,000
Accumulated Depreciation buildings	45,600
Accounts payable	9,500
Notes Payable (13,600 is due in 6 months)	113,600
Accumulated depreciation equipment	18,720
Unearned service revenue	3,600
Service Revenue	14,700