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 Pinnacle Co issued 3,000 shares of common stock at $40 per share, receiving cash Crest Corporation purchased inventory worth $15,000 on credit from Summit Retailers Everest Holdings sold inventory for $20,000 in cash Topaz Inc paid Summit Retailers $11,000 for the inventory purchased Skyline Holdings purchased equipment for $30,000 in cash Highland Enterprises received a $8,000 invoice for utilities Frontier Inc paid $4,000 for rent Ascend Retailers sold inventory worth $25,000 on credit to Everest Holdings Titan Corporation received $18,000 from Ascend Retailers for the sale made on credit Skyline Holdings paid salaries totaling $10,000 Everest Holdings issued a dividend of $5,000 Pinnacle Co purchased additional inventory for $22,000 on credit from Crest Corporation Crest Corporation received $14,000 from Pinnacle Co for the inventory sold on credit Summit Retailers paid $6,000 for advertising expenses Topaz Inc received $9,000 from customers for the sale made on credit Highland Enterprises paid $3,500 for insurance Frontier Inc sold equipment for $12,000 in cash Ascend Retailers paid salaries totaling $7,500 Titan Corporation declared and paid dividends of $8,000 Skyline Holdings acquired a loan of $50,000 from a bank Instructions Record each transaction in the general journal Post journal entries to the trial balance Prepare an income statement for the year ended December 31, 20X1 Prepare a balance sheet as of December 31, 20X1

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Posted on May 22, 2024

Everest Holdings, Frontier Inc., Titan Corporation, Summit Retailers, Skyline Holdings, Pinnacle & Co., Topaz Inc., Ascend Retailers, Highland Enterprises, and Crest Corporation commenced operations on

"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:

Pinnacle & Co. issued 3,000 shares of common stock at $40 per share, receiving cash.
Crest Corporation purchased inventory worth $15,000 on credit from Summit Retailers.
Everest Holdings sold inventory for $20,000 in cash.
Topaz Inc. paid Summit Retailers $11,000 for the inventory purchased.
Skyline Holdings purchased equipment for $30,000 in cash.
Highland Enterprises received a $8,000 invoice for utilities.
Frontier Inc. paid $4,000 for rent.
Ascend Retailers sold inventory worth $25,000 on credit to Everest Holdings.
Titan Corporation received $18,000 from Ascend Retailers for the sale made on credit.
Skyline Holdings paid salaries totaling $10,000.
Everest Holdings issued a dividend of $5,000.
Pinnacle & Co. purchased additional inventory for $22,000 on credit from Crest Corporation.
Crest Corporation received $14,000 from Pinnacle & Co. for the inventory sold on credit.
Summit Retailers paid $6,000 for advertising expenses.
Topaz Inc. received $9,000 from customers for the sale made on credit.
Highland Enterprises paid $3,500 for insurance.
Frontier Inc. sold equipment for $12,000 in cash.
Ascend Retailers paid salaries totaling $7,500.
Titan Corporation declared and paid dividends of $8,000.
Skyline Holdings acquired a loan of $50,000 from a bank.