[rabscuttle385]

Shouldn’t the stock go under the equity part of the balance sheet? It’s on the same side as the liability part.

Assets = Liabilities + Equity

[GUNGAGALUNGA]

You are correct. It is in shareholder's equity. Well until Obama gets a hold of all US stocks.

[Ready4Freddy]

LouAvul, the object of your question - "Capital Stock, $1 par, 10,000 shares issued and outstanding." - is actually just a memo that would be in the Equity section to describe the Capital (Common) Stock. The $ amount that would show in the Equity section on the Balance Sheet would be the amount that the company actually received for the stock.