The following accounts and their balances were selected from the unadjusted trial balance of Block Ayala Group Inc., a freight forwarder, at October 31, the end of the current fiscal year:

Common Stock, no par, $22 stated value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,500,000
Paid-In Capital from Sale of Treasury Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000
Paid-In Capital in Excess of Par—Preferred Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,000
Paid-In Capital in Excess of Stated Value—Common Stock . . . . . . . . . . . . . . . . . . . . . . 380,000
Preferred 2% Stock, $110 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,050,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,036,000

Prepare the Paid-In Capital portion of the stockholders’ equity section of the balance sheet using Method 1 of Exhibit 8. There are 375,000 shares of common stock authorized and 100,000 shares of preferred stock authorized.