The following accounts and their balances were selected from the unadjusted trial balance of Point Loma Group Inc., a freight forwarder,

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








Common Stock, no par, $14 stated value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,480,000
Paid-In Capital from Sale of Treasury Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Paid-In Capital in Excess of Par—Preferred Stock. . . . . . . . . . . . . . . . . . . . . . . . . . 210,000
Paid-In Capital in Excess of Stated Value—Common Stock . . . . . . . . . . . . . . . . 480,000
Preferred 2% Stock, $120 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,400,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,500,000


Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 4. There are 375,000 shares of common stock authorized and 85,000 shares of preferred stock authorized.


Answer:















Stockholders’ Equity
Paid-in capital:
Preferred 2% stock, $120 par
(85,000 shares authorized,
70,000 shares issued) $8,400,000
Excess of issue price over par 210,000 $ 8,610,000
Common stock, no par, $14 stated
value (375,000 shares authorized,
320,000 shares issued) $4,480,000
Excess of issue price over par 480,000 4,960,000
From sale of treasury stock 45,000
Total paid-in capital $13,615,000