| (5) | Subscribers | $1,000.00 | |
| Capital Stock Subscriptions | $1,000.00 | ||
| (6) | Cash | 400.00 | |
| Subscribers | 400.00 | ||
| (7) | Subscribers | 400.00 | |
| Surplus from Forfeited Stock. | 400.00 | ||
| To transfer the forfeited payments to Surplus. | |||
| (8) | Capital Stock Subscriptions | $1,000.00 | |
| Subscribers | $1,000.00 | ||
| To reverse. | |||
| (9) | Subscribers | 900.00 | |
| Surplus from Forfeited Stock | 100.00 | ||
| Capital Stock Subscriptions | 1,000.00 | ||
| (10) | Cash | 900.00 | |
| Subscribers | 900.00 | ||
| (11) | Capital Stock Subscriptions | 1,000.00 | |
| Capital Stock | 1,000.00 |
Stock of No Par Value
Booking capital stock of no par value presents no new principles. Inasmuch as the stock has no fixed par value, its sale is recorded for what it fetches. There can be neither discount nor premium. Payment of the subscription may be made, just as in any other case, by means of cash, property, or services, and the same care must be exercised in placing proper valuations on the property taken over. Here there is not the danger of inflating property values to show them equivalent to the par value of the stock issued therefor. Rather, subscription for the stock is made at the figure of the fair value of the property to be turned over in payment of the subscription. In the case of no-par-value stock even greater care must be exercised to see that the contributed capital shall never be encroached upon in the declaration of dividends, and careful supervision is somewhat more difficult because the number of shares issued bears no relation to the amount of the capital stock.
Distinctive Records
The accounting and other records peculiar to a corporation are explained in Volume I, Chapter XLVIII. These records are the subscription book and subscription ledger or instalment book, the stock certificate book and stock ledger, the stock transfer book, the minute book, sometimes a dividend book, in large companies a register of transfers (which classifies the information as to transfers given in the stock transfer book, and so may serve as a convenient posting medium for the stock ledger), and a stock register (a record kept by the officially appointed registrar of the corporation, whose duty it is to see that there are no irregularities in the issue of stock and that there is no overissue). The stock register should show the amount of stock authorized and the amount issued at any given time, the balance being the stock not yet issued. A form for the stock transfer book and several forms for stock ledgers as prescribed by the Comptroller of the State of New York are shown below.[3] The two latter forms of the stock ledger are applicable only to the State of New York.
Ledger Folio 27
Transfer No. 556
Alliance Automobile Company
For value Received, I hereby sell, assign and transfer unto John H. Lansing, of Newark, New Jersey, Seventy-six Shares of the Capital Stock of the above-mentioned Company, now standing in my name on the Company books and represented by surrendered Certificates Nos. 32, 37, and 44.