If stock is sold for cash only and the entire amount is subscribed and paid for, the entry is simply

Cash $100,000
To capital Stock $100,000
Stock subscribed and paid for by the following:
John Doe$50,000
Richard Roe25,000
Henry Snow25,000
as per subscription
list dated————190——.

If only a part of the authorized stock is subscribed, there are two methods of entering the transaction.

First:Debit cash and credit capital stock as above, only as fast as stock is subscribed and paid for.
Second:Debit cash and credit capital stock for the amount actually subscribed and paid for. Debit a new account called _unsubscribed stock_ and credit capital stock for the balance of the total authorized issue of stock.

Illustrating the above, we will suppose that the National Manufacturing Co. is organized with a capitalization of $100,000, of which $50,000 is subscribed and paid for in cash. The entries would be:—

Cash $50,000
To capital stock $50,000
Stock subscribed and paid for by the following:
John Doe$25,000
Richard Roe15,000
Henry Snow10,000
————
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 Doe25,000
Richard Roe15,000
Henry Snow10,000
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:

Subscriptions50,000
To capital stock 50,000