Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. This brochure is designed to help you gain a basic understanding of how to read financial statements.Companies report both common and preferred stock in the stockholders' equity section of the balance sheet. Nevada law does not require stockholder approval for the issuance of authorized shares. Electronically filed returns. The electronic filing threshold for corporate returns required to be filed on or after January 1, 2024,. Customer: Hello, I am completing a balance sheet for my s corp tax return in QB's the category is Members Equity. Companies report both common and preferred stock in the stockholders' equity section of the balance sheet. Equity Classifications. In the governmental fund financial statements, equity is classified as fund balance.