The Travis Company uses the spreadsheet method for completing the statement of cash flows. Capital stock is the total amount of shares a company is authorized to issue, while treasury stock is the number of shares a company holds in its treasury.Balance Sheet—or Statement of Financial Position—reports a snapshot of a company's assets, liabilities, and equity at a particular time. Solved: Working on an scorp balance sheet and I'm not sure if I'm entering Capital Stock and Additional PaidIn Capital correctly. This chapter chapter 13 titled corporations organization and capital stock transactions has three main learning objectives. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Additional paid-in capital refers to the value of cash or assets that the shareholders provided over and above the par value of the company's shares. On the balance sheet, Equity = Total Assets – Total Liabilities. We have a bank account for our LLC. The fair value of each class of equity securities may be different than the amounts stipulated in the purchase agreement.