Functions of a Balance Sheet. • Measure of farm business growth.Question: In the balance sheet, capital stock includes retained eamings. Additional paid-in capital. In the equity section of a balance sheet, common stock shows the amount of money that holders of common stock have invested in the company. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Contributed capital is the total value of cash and other assets that shareholders provide to a company in exchange for ownership shares. Yes, "Initial Capital" is typically included in the total Shareholder's Equity on a company's balance sheet. Fill out each and every section of this form.