The following text covers the essential elements of the balance sheet. In this video I want to show you how to work through a statement of stockholders equity.Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Solved: Working on an scorp balance sheet and I'm not sure if I'm entering Capital Stock and Additional PaidIn Capital correctly. Prepare the shareholders' equity section of the balance sheet and calculate return on equity. This fund is presented in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balance. On January 1, 2020, the Texas Ethics Commission began adjusting certain reporting thresholds. We have audited the accompanying basic financial statements of the Bexar County Hospital. Contributed capital is the amount of money that shareholders invest in a corporation in exchange for newly issued shares of stock. This is an expense recognized on the income statement.