"Stockholders' Equity" section of balance sheet

Specialty Auto Racing Inc. retails racing products for BMWs$,$ Porsches, and Ferraris. The following accounts and their

balances appear in the ledger of Specialty Auto Racing on July $31,$ the end of the current year:

Common Stock, $$10$ par

$$880,000$

Paid$-$In Capital from Sale of Treasury Stock$-$Common

$66,400$

Paid$-$In Capital in Excess of Par$-$Common Stock

$264,000$

Paid$-$In Capital in Excess of Par$-$Preferred Stock

$103,200$

Preferred $4\%$ Stock, $$50$ par

$1,720,000$

Retained Earnings

$3,701,000$

Treasury Stock$-$Common

$63,800$

Stock shares authorized are: preferred stock, $100,000$ shares; common stock, $400,000$ shares. There are $5,800$ shares

of common stock held as treasury stock.

Prepare the "Stockholders' Equity" section of the balance sheet as of July $31,$ the end of the current year using Method

$1$ of Exhibit $10.$

Specialty Auto Racing Inc:

Stockholders' Equity

July $31,20x$

Line Item Description

Paid$-$In Capital:

Preferred $4\%$ Stock, $$50$ Par $(100,000$ Shares Authorized, $34,400$ Shares Issued$)$

Excess of Issue Price Over Par

Paid$-$in capital, preferred stock