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.Customer: Hello, I am completing a balance sheet for my s corp tax return in QB's the category is Members Equity. 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. On a company's balance sheet, common stock is recorded in the "stockholders' equity" section. Balance Sheet Liabilities and Owners Equity. Analyze and discuss how a firm's capital structure affects the firm's value. Outline: Financial Statements. On a company's balance sheet, common stock is recorded in the "stockholders' equity" section.