INTRODUCTORY ACCOUNTING $-$ COBU $201.$

SPRING $2024-$ CLASS PROJECT

As the staff accountant of Johnson Company Limited, you have been provided with the following selected accounts and their current balances in the ledger for the fiscal year ended December $31,2020$:

$\backslash$table$[[$Cash$,$$$240,000],[$Accounts receivable,$966,000],[$Inventory$,1,690,000],[$Estimated returns inventory,$22,500],[$Office supplies,$13,500],[$Prepaid insurance,$8,000],[$Office equipment,$830,000],[$Accumulated depreciation$-$office equipment,$550,000],[$Store equipment,$3,600,000],[$Accumulated depreciation$-$store equipment,$1,820,000],[$Accounts payable,$326,000],[$Customer refunds payable,$40,000],[$Salaries payable,$41,500],[$Note payable $($final payment due in $6$ years$),300,000],[$Common stock,$500,000],[$Retained earnings,$2,949,100],[$Dividends$,100,000],[$Sales$,11,343,000],[$Cost of goods sold,$7,850,000],[$Sales salaries expense,$916,000],[$Advertising expense,$550,000],[$Depreciation expense$-$store equipment,$140,000],[$Miscellaneous selling expense,$38,000],[$Office salaries expense,$650,000],[$Rent expense,$94,000],[$Depreciation expense$-$office equipment,$50,000],[$Insurance expense,$48,000],[$Office supplies expense,$28,100],[$Miscellaneous administrative expense,$14,500],[$Interest expense,$21,000]]$

Required:

Prepare a multiple$-$step income statement.

Prepare a statement of stockholders' equity. Additional common stock of $$75,000$ was issued during the year ended Dec. $31,2022.$

Prepare a balance sheet, assuming that the current portion of the note payable is $$50,000.$

Briefly explain how multiple$-$step and single$-$step income statements differ.