On a company's balance sheet, common stock is recorded in the "stockholders' equity" section. Capital stock or trust principal, or current funds .Preferred stock can be combined with common stock on the balance sheet. Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. Preferred stock can be combined with common stock on the balance sheet. Equity financing, meaning the sale of stock shares, provides cash capital that is also reported in the equity portion of the balance sheet. The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. Did the organization obtain separate, independent audited financial statements for the tax year? Current Assets is always the first account listed in a company's balance sheet under the Assets section. Customer: Hello, I am completing a balance sheet for my s corp tax return in QB's the category is Members Equity.