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.Debit Retained Earnings for any Shareholder Distributions. 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. The number of shares of the registrant's common stock outstanding at January 31, 2024 was 427,328,652. The formula for calculating capital stock on balance sheet is straightforward. Balance Sheet Liabilities and Owners Equity. Conceptual framework. Review of the Accounting Process; The Balance Sheet and Financial Disclosures.