Ghayyas and Sons, Metro Trading, Blue Wave Inc., Greenfield Enterprises, Redwood Traders, Omega Holdings, Silverline Corporation, Platinum Retailers, Golden Gate Inc., and Diamond Distributors 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. Ghayyas and Sons issued 2,000 shares of common stock at $15 per share, receiving cash.
2. Metro Trading purchased inventory worth $8,000 on credit from Blue Wave Inc.
3. Greenfield Enterprises sold inventory for $12,000 in cash.
4. Redwood Traders paid Blue Wave Inc. $6,000 for the inventory purchased.
5. Omega Holdings purchased equipment for $10,000 in cash.
6. Silverline Corporation received a $4,000 invoice for utilities.
7. Platinum Retailers paid $2,000 for rent.
8. Golden Gate Inc. sold inventory worth $18,000 on credit to Greenfield Enterprises.
9. Diamond Distributors received $14,000 from Golden Gate Inc. for the sale made on credit.
10. Ghayyas and Sons paid salaries totaling $5,500.

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.