Cash $50,000 To capital stock $50,000 Stock subscribed and paid for by the following: John Doe $25,000 Richard Roe 15,000 Henry Snow 10,000 -------- Unsubscribed stock 50,000 To capital stock 50,000 _If stock is not paid for when subscribed_ or if it is payable in installments the entry is: John Doe 25,000 Richard Roe 15,000 Henry Snow 10,000 To capital stock 50,000 For subscription to stock as per subscription list. Or if it is not desired to enter the names of the subscribers an account is opened in the name of _subscriptions_, and the entry is: Subscriptions 50,000 To capital stock 50,000 The above entries at once place the entire authorized capital stock on the books. When further subscriptions are made, subscription account is debited and unsubscribed stock is credited. When subscriptions are paid, cash is debited and subscriptions credited. When subscriptions are payable in regular installments, payments may be credited to subscriptions. The plan is sometimes followed, however, of opening an account for each installment, as Installment No. 1, to which payments are credited. When the installment is fully paid this account would be closed into subscription account. Or still another formula--when stock has been sold _subject to assessments to be made by the board of directors_, and an assessment has been called the entry is: Assessment No. 1. $10,000 To subscriptions $10,000 An assessment of 20% as per resolution of the board of directors John Doe 5,000 Richard Roe 3,000 Henry Snow 2,000 When paid, cash is debited and assessment No. 1 is credited. When the next assessment is called an account is opened with assessment No. 2. =27. When a Part of the Stock is Paid for in Property and the Balance in Money.= A corporation known as The National Manufacturing Company is formed to take over a manufacturing business owned by John Doe. The capital stock is $100,000 of which Mr. Doe is to receive $50,000 for the assets and goodwill of his business, the company agreeing to assume his liabilities. His statement of affairs shows the following: _Assets_ Cash in bank $2,264.00 Accounts receivable 4,650.50 Machinery 9,000.00 Manufactured goods 2,100.00 Material and supplies 3,780.00 Furniture and fixtures 700.00 $22,494.50 -------- _Liabilities_ Accounts payable 864.20 864.20 -------- -------- 21,630.30