On December 1, 2020, Dee Ltd. agreed to sell 40,000 of their no par common shares on a subscription basis. On that day, 25% of the subscription price was collected as a down payment, with the remaining 75% due in 2021. On the December 31, 2020 statement of financial position, the shareholders' equity section would report

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Since only 25% of the subscription price for the common shares was collected as a down payment, the full value of the shares has not yet been received. Therefore, the shareholders' equity section should report common shares subscribed for 100% of the subscription price less a subscription receivable for 75% of the subscription price. This means that the full amount of shares that were agreed to be sold should be included in the common shares account, but a separate account for subscription receivables should also be created to reflect the amount still owed by subscribers.