As of January 1, 2011, Clark Company had 300,000 shares of $2 par common stock authorized. 200,000 shares have already been issued for $5 per share. They also had, as of Jan 1, 2011, 200,000 shares of $50 par, 4% cumulative preferred stock authorized, of which 10,000 shares have already been issued for $57 per share. The retained earnings balance as of January 1, 2011 is $90,000.

• On January 1, 2011, the company issued 100,000 of 8%, 5-year bonds for 92.5. The Bonds pay interest every June 30 and December 31, and the company uses the effective interest method of amortization. The market rate of interest at the time of issuance was 10%.
• On January 1, 2011, the company borrowed $100,000 by issuing a mortgage note payable in order to purchase a new warehouse. The mortgage note was for 40 years and carried a 9% rate of interest. The annual payments are $9,296.
• On April 1, 2011, the company issued another 30,000 shares of common stock at $6 per share.
• On October 31, 2011, the company purchased 10,000 shares of their common stock for $4 per share.
• On December 1, 2011, the company paid dividends of $50,000 which were declared in November. Last year, they did not pay any dividends.
• On December 31, 2011 Clark paid their employee, Millicent, her annual salary. Gross salary is $30,000, FWT is $5,000, FICA is $2,300 (7.65% of gross salary), FUTA is $500, and SUTA is $1,500.

REQUIRED

1. What is the carrying value of the bonds on December 31, 2011?
2. What is the outstanding balance of the mortgage note on December 31, 2011 balance sheet?
3. What is the total interest expense incurred by Clark Company during 2011?
4. (a) How much is Salary Expense? (b) What is the Millicent's net pay? (c) How much is Payroll Tax Expense? (d) How much will Clark send to the government?
5. How much of the dividends paid on December 1 were paid to preferred stockholders? What amount was paid to common stockholders?
6. As of December 31, 2011, how many shares of common stock are authorized, issued, and outstanding?
7. Assume Clark's net income for 2011 was $35,000, which includes all expenses contained in the problem. What is total Stockholders' Equity at December 31, 2011?