"Everest Holdings," "Frontier Inc.," "Titan Corporation," "Summit Retailers," "Skyline Holdings," "Pinnacle & Co.," "Topaz Inc.," "Ascend Retailers," "Highland Enterprises," and "Crest Corporation" commenced operations on January 1, 20X1. Throughout the year, these companies engaged in various transactions. Prepare journal entries for each transaction, create a trial balance, and then prepare an income statement and a balance sheet as of December 31, 20X1.
Transactions:

1. Everest Holdings issued 1,800 shares of common stock at $30 per share, receiving cash.
2. Frontier Inc. purchased inventory worth $10,500 on credit from Titan Corporation.
3. Summit Retailers sold inventory for $15,000 in cash.
4. Skyline Holdings paid Titan Corporation $8,000 for the inventory purchased.
5. Pinnacle & Co. purchased equipment for $20,000 in cash.
6. Topaz Inc. received a $6,500 invoice for utilities.
7. Ascend Retailers paid $3,000 for rent.
8. Highland Enterprises sold inventory worth $22,000 on credit to Skyline Holdings.
9. Crest Corporation received $12,500 from Highland Enterprises for the sale made on credit.
10. Everest Holdings paid salaries totaling $7,500.

Instructions:

1. Record each transaction in the general journal.
2. Post journal entries to the trial balance.
3. Prepare an income statement for the year ended December 31, 20X1.
4. Prepare a balance sheet as of December 31, 20X1.