Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. 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. The Comprehensive Annual Financial Report (CAFR) of the County of Contra Costa for the fiscal year of 2001. Supporting the balance sheet of the General Fixed Assets Group shown on pages 6 and. 7 in the accompanying general purpose financial statements. The formula for calculating capital stock on balance sheet is straightforward. Capital stock or trust principal, or current funds. If 'Yes,' complete Schedule D, Part X. . . . Unearned revenue is removed from the combined balance sheet and revenue is recognized.