Salaries
John Jones
——% of sales as
per agreement.
Subscriptions
Amt. due applied in
payment of stock subscription.
If he has no account, on the books the transaction may be recorded by one entry—
| Salaries | $1,500.00 | |
| Subscriptions | $1,500.00 | |
| —————— | ||
WHEN STOCK SUBSCRIPTIONS ARE NEVER FULLY PAID
43. Corporations are sometimes organized with all capital stock subscribed but only paid for in part, and the balance of subscriptions never called for. T. C. Harris, John Alfred, and M. B. Hatch organize a company to conduct the business of buying, selling, and renting automobiles with a capital stock of $15,000.00, each subscribing for $5,000.00. A cash payment of 25% is made on the stock and the balance is to be paid in when called for. The entries stand on the books as follows—
| Subscriptions | $15,000.00 | |
| Capital stock | $15,000.00 | |
| Cash | 3,750.00 | |
| Subscriptions | 3,750.00 |