Eq. , assets are not allowed to fall below par value and this represents a cushion of equity capital existing for the protection of creditors. Usually declared only when there is a profit. 990,000 Subscription to capital stock payment of stocks in installments or at a future date.
Stock is issued after the entire subscription price has been collected.
Only the initial issuance of stock by the company is recorded in the books. Total Stockholder s Equity remains the same. The value for Common Stock is the same. The only change is the Par Value.