1) A company credits Additional Paid-in Capital for the portion of the cash proceeds above par value received for the issuance of stock. 2) Authorized stock is the number of shares that have been sold to investors. 3) Par value has a direct relationship to the market value of the common stock. 4) The stockholders' equity section of the balance sheet shows how each equity account changed during the year. 5) The amount of retained earnings equals net income minus dividends for the current year