Let me try answering your question to what I have understood;
Open a file1 with height: 8.5 and Width :11
Resolution : 300 as its going to be a print out and
Color Mode: CMYK
Open file 2- Canvas-Image with height: 4 and width: 5
Resolution : 300 as its going to be a print out and
Color Mode: CMYK
Now using the Move tool, move all the Canvas/Images onto the file1 and align it the way you want.
Hope this helps!!!
Cheers,
SP
https://www.videoediting-direct.co.uk