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The subscribed capital stock account is only issued when fully paid. The initial entry will require a debit to cash and subcription receivable account with a corresponding credit to 'Subcribed Capital Stock' and APIC (add'l paid in capital) if issued above par. Now, when it is presented in the financial statements, the subcribed capital stock will be added to the common stock issued and fully paid. However, the account will also be reduced by the subscription receivable balance.
Take note:
When the subscription receivable is expected to be paid in the current period, it will presented under trade and other receivables, as a part of current assets.
What else can I help you with?
What is a delinquent stock?
stock subscribed but not paid
How is common stock dividends distributable classified?
Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
What is the stock offset that is listed on my paystub?
The stock offset on your paystub is the amount deducted from your pay to purchase company stock through an employee stock purchase plan or other stock-related program.
Is capital stock the same as common stock?
Yes
What is the capital stock of a corporation?
The capital stock of a corporation refers to the total value of the shares issued by the company to its shareholders. It represents the ownership equity in the corporation, which can be divided into common and preferred stock. Capital stock is a vital component of a corporation's financial structure, as it provides the funds necessary for business operations and growth. The value of capital stock can fluctuate based on the corporation's performance and market conditions.
What is subscribed capital stock?
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
What would be the entry on subscribed capital stock?
Generally in the format of: Cash (cash paid up front) Common Stock Subscribed Receivable (remaining amount due) Common Stock Subscribed (Temporary 'Legal Capital' Account) Additional Paid In Capital - Common When fully paid, post: Cash (cash paid) Common Stock Subscribed Receivable Common Stock Subscribed Common Stock
What is the minimum subscribed capital stock?
25%
What is a delinquent stock?
stock subscribed but not paid
How does the issuing of capital stock effect net income?
Somebody please correct me if I am wrong, but issuing capital stock increases total assets. If one considers total assets when calculating net income, any capital stock or additional paid in capital must be deducted from total assets in order to find net income. Issuance of stock does not contribute to income from operations; it is a financing activity that contributes to total equity. Also, if there are dividend payments for the year, these outflows must be added to assets before arriving at net income.
Can pay dividends even there is an unpaid subscribed capital stock?
cash dividends due on delinquent stock shall first be applied to the unpaid balance on the subscription, plus costs and expenses. stock dividends shall be withheld from the delinquent stockholder until his unpaid subscription is fully paid.
How is common stock dividends distributable classified?
Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
Is treasury stock the same as capital stock?
Treasury stock is contra of capital stock used by company to purchase own capital stock to reduce the paid in capital.
Does additional stock increase retained earnings?
Retained earning only increased due to prior year operating profits and that's why it has no effect of any kind of additional capital introduced which directly increase the subscribed or paid up capital and not retained earnings.
Is haircut percentage deduct from stock value while selling it?
Yes, it is deducted.
Is Capital stock asset or liability?
Capital stock is part of liability
What is the stock offset that is listed on my paystub?
The stock offset on your paystub is the amount deducted from your pay to purchase company stock through an employee stock purchase plan or other stock-related program.
