Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Lastly, you'd credit Capital Stock and APIC while debiting Retained Earnings to balance out the equity section.The balance sheet reports an organization's assets (what is owned) and liabilities (what is owed). Reviewing how to prepare the stockholders' equity section of a balance sheet. Paid-in capital is the cash that a company has received in exchange for its stock shares. Learn how paid-in capital impacts a company's balance sheet. 3000 Capital Stock. 1,462,599. 3100 Treasury Stock. (1,250,000). On a company's balance sheet, common stock is recorded in the "stockholders' equity" section. The stockholders' equity section of the balance sheet reports the worth of the stockholders.