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.The simplest presentation of capital employed is total assets minus current liabilities. This form is for general instructions that apply to all corporation tax forms. It includes a variety of topics about how to fill out your form. A balance sheet is a snapshot of a company's financial health. Learn how to prepare a balance sheet and how important they are in business. Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. Solved: Working on an scorp balance sheet and I'm not sure if I'm entering Capital Stock and Additional PaidIn Capital correctly. A balance sheet is a statement of a business's assets, liabilities, and owner's equity as of any given date.