Learn what capital is on a balance sheet and how to calculate working capital using a simple formula in order to understand your company's finances. Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter.Massaging of the S Corp equity section of the balance sheet is required when being taxed as an S corporation especially an LLC. Areholders, capital stock paid in or capital surplus, (Sched ule L, Balance Sheet) and the Schedule M-2 balance at the beginning of the year. If a company has preferred stock, it is listed first in the stockholders' equity section due to its preference in dividends and during liquidation. Please fill out this field. When you are thinking about buying stocks in a company, you will want to look at its balance sheet. Balance Sheets per Books . . . . . . . 47. The amount is listed on the balance sheet in the company's shareholders' equity section. Balance Sheets per Books . . . . . . . . . . 26.