shares acquired under an installment plan; also termed subscribed stock. In this way by making a down payment, a potential stockholder reserves shares that may be issued only when full payment has been received. The entry at the time of subscription is to debit cash and/or subscriptions receivable and credit capital stock subscribed and premium on capital stock, if any. Capital stock subscribed is shown under capital stock in the stockholders' equity section of the balance sheet. If a subscriber defaults on the subscription, the company must account for it in accordance with the laws of the states of incorporation.