Describe a stock subscription plan.

In a stock subscription plan, buyers pledge to buy certain stocks but pay in installments or in a lump sum at a later date. When the company accepts a subscription for common stock, the transaction is an increase in the asset account Subscriptions Receivable-Common Stock for the subscribed amount, and increase in the equity account Common Stock Subscribed for the par value, and an increase in the equity account Paid-In Capital in Excess of Par-Value-Common (if the subscribed amount is more than the par value. The equity account Common Stock is not affected until the stock is actually issued, usually when the subscription is paid in full.