"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. Skyline Holdings issued 2,500 shares of common stock at $35 per share, receiving cash.
2. Ascend Retailers purchased inventory worth $12,000 on credit from Crest Corporation.
3. Summit Retailers sold inventory for $18,500 in cash.
4. Pinnacle & Co. paid Crest Corporation $9,000 for the inventory purchased.
5. Topaz Inc. purchased equipment for $25,000 in cash.
6. Highland Enterprises received a $7,000 invoice for utilities.
7. Frontier Inc. paid $3,500 for rent.
8. Everest Holdings sold inventory worth $28,000 on credit to Pinnacle & Co.
9. Titan Corporation received $15,000 from Everest Holdings for the sale made on credit.
10. Skyline Holdings paid salaries totaling $8,500.

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.