Stock Subscriptions--promise to purchase shares in the future, usually accompanied by a down payment. Shares cannot be issued until the consideration is received.
Example: 100 shares of $4 par common stock are subscribed for $10 per share. For simplicity, assume no down payment. To accept subscription: 1/1/X1
Stock Subscription Rec 1,000
(Current asset or contra SOE)
C/S, subscribed 400
Paid in Capital, C/S 600
*Note: Premium arises upon the acceptance of the subscription!