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INCOME PROFIT AND LOSS, AND
GENERAL BALANCE SHEET ACCOUNTS
STEAM ROADS
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CLASSIFICATION
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PRESCRIBED BY THE
ISSUE OF 1914
Effective on July 1, 1914
WASHINGTON
GovKRNMENT PRINTING OFFICE
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INTERSTATE COMMERCE COMMISSION
ACT TO REGULATE COMMERCE
IN ACCORDANCE WITH SECTION 20 OF THE
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THE INTERSTATE COMMERCE COMMISSION.
JAMES S. HARLAN, of Illinois.
JUDSON C. CLEMENTs, of Georgia.
EDGAR E. CLARK, of Iowa. -
CHARLEs C. McCHORD, of Kentucky.
BALTHASAR H. MEYER, of Wisconsin.
HENRY C. HALL, of Colorado.
WINTHROP M. DANIELs, of New Jersey.
GEORGE B. McGINTY, Secretary.
Sºº
§sº
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y
*
2~
C O N TE N T S.
Page.
Order of the Commission. . . . . . . . . . . . . . . . . . . . . . . . .......................... 5
Introductory letter-------------------------------. . . . . . . . . . . . . . . . . . . . . . . . . 7
General instructions------------------------------------------------------ 9
List of income accounts.---------------------------------------------------- II.
Special instructions for income accounts........ * - - - - - - - - - - - - - - - - - - - - - - - - - - 13
Text pertaining to income accounts-------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Form of income statement -------------------------------------------- 27
List of profit and loss accounts.--------. . . . . - - - - - - - - - - - - - - - - * * * * * * as e = * * * is e º gº 29
Special instructions for profit and loss accounts......... . . . . . . . . . . . . . ...... 3].
Text pertaining to profit and loss accounts................................ 33
List of general balance-sheet accounts.------------........................... . 37
Special instructions for balance-sheet accounts............................... 39
Text pertaining to general balance-sheet accounts....... . . - - - - - - - - - - - - - - - - - 43
Form of general balance-sheet statement ...------------------------------ 58
3.
Tº gº º ºs
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ORDER.
At a General Session of the INTERSTATE COMMERCE
COMMISSION, held at its office in Washington, D.C.,
on the 19th day of May, A. D. 1914.
The subject of a Uniform System of Accounts to be prescribed
for and kept by carriers being under consideration, the following
order was entered: - -
It is ordered, That the Classification of Income, Profit and Loss,
and General Balance Sheet Accounts, with the text pertaining
thereto, embodied in printed form to be hereafter known as Issue
of 1914, a copy of which is now before this Commission, be, and the
same is hereby, approved; that a copy thereof duly authenticated
by the Secretary of the Commission be filed in its archives, and a
second copy thereof, in like manner authenticated, in the office of
the Division of Carriers’ Accounts; and that each of said copies so
authenticated and filed shall be deemed an original record thereof.
It is further ordered, That the said classification, with the text
pertaining thereto be, and is hereby, prescribed for the use of car-
riers by rail (exclusive of electric railways) subject to the provisions
of the Act to Regulate Commerce as amended, in the keeping and
recording of their said accounts; that each and every such carrier
and each and every receiver or operating trustee of any such carrier
be required to keep all said accounts in conformity there with; and
that a copy of the said issue be sent to each and every such carrier and
to each and every receiver or operating trustee of any such carrier.
It is further ordered, That in order to avoid destroying the basis
of comparison with previous years, any such carrier or any receiver
or operating trustee of any such carrier may, during the twelve
months from the time that the said issue becomes effective, keep and
maintain, in addition to the said accounts hereby prescribed, such
portion or portions of its present income, profit and loss, and general
balance-sheet accounts as may be deemed desirable by any such carrier
or by any receiver or operating trustee thereof, for the purpose of
such comparison; or, during the same period, may maintain such
groupings of the primary accounts hereby prescribed as may be
desired for that purpose. -
It is further ordered, That, unless otherwise ordered, any such
carrier or any receiver or operating trustee of any such carrier may
- 5
6 ORDER.
keep any temporary or experimental income, profit and loss, and
general balance-sheet accounts the purpose of which shall be to de-
velop the efficiency of operations: Provided, however, That such
temporary or experimental accounts shall not impair the integrity
of any general or primary account hereby prescribed.
It is further ordered, That July 1, 1914, be, and is hereby, fixed
as the date on which the said issue of the Classification of Income,
Profit and Loss, and General Balance Sheet Accounts for Steam
Roads shall become effective.
By the Commission.
[SEAL.] GEORGE B. McGINTY,
Secretary.
INTRODUCTORY LETTER.
INTERSTATE COMMERCE COMMISSION,
DIVISION OF CARRIERs’ ACCOUNTS,
. Washington, May 19, 1974.
TO ACCOUNTING OFFICERS OF STEAM RAILWAYS : .
This Classification of Income, Profit and Loss, and General Bal-
ance Sheet Accounts supersedes the Form of Income and Profit and
Loss Statement for Steam Roads, First Issue, effective July 1, 1912,
and the Form of General Balance Sheet Statement, First Revised
Issue, effective June 15, 1910. It also supersedes conflicting instruc-
tions in Accounting Bulletin No. 8. -
In Income all of the revenues from operating physical property the
cost of which is includible in the accounts for investment in road and
equipment have been combined in one account, and correspondingly
the expenses of operation have been combined. Separate accounts
have been provided for the revenues from and the expenses of Oper-
ating miscellaneous physical property. A distinct account has been
provided in which to include such revenue from operations as has
been determined to be uncollectible during the period for which the
accounts are stated. Distinct accounts have been provided for rent
from and rent for the several classes of equipment.
In Profit and Loss an account has been provided in which to show
the amount of revenue overcharges which are determined to be un-
refundable during the period for which the accounts are stated. An
account is also provided for donations from individuals and com-
panies for the construction or acquisition of property or for com-
pensating the carrier for loss anticipated during the early period of
operation.
Balance-sheet asset accounts have been provided for “Improve-
ments on leased railway property,” and “Deposits in lieu of mort-
gaged property sold.” Additional accounts have been provided in
which to include demand deposits and time drafts and deposits,
items which heretofore have been included as cash. The account
“Taxes paid in advance " has been eliminated and provision made
for showing in red the net amount of taxes paid over the amount of
taxes accrued in an account under the caption of “Tax liability.”
A liability account has been provided for “Grants in aid of con-
Struction,” and separate accounts have been provided for accrued
7
- dº?
8 INTRODUCTORY LETTER.
depreciation upon road, upon equipment, and upon miscellaneous
physical property.
In the preparation of the text of the accounts and in the grouping
of the accounts in the form of general balance sheet it has been
primarily the purpose to provide for showing, in the group of ac-
counts under the caption “Current assets,” only items of available
assets or of assets which there is a reasonable assurance will become
available within a year from the date of the balance sheet.
The general and special instructions contain a comprehensive
statement of the principles underlying the classification, indicating
generally the application of the accounting rules. The attention of
accounting officers is called to the importance of requiring all em-
ployees who are assigned to accounting work in connection with
income, profit and loss, and general balance-sheet accounts to famil-
iarize themselves thoroughly with these instructions.
In the preparation of the revision of the accounting rules contained
in this and other classifications for steam roads, which are concur-
rently issued, the Commission has had the cooperation of the Associa-
tion of American Railway Accounting Officers, and its Standing
Committee on Corporate, Fiscal, and General Accounts.
The classification, in tentative form, has been presented for criti-
cism and suggestions to the chief accounting officer of each railway
and to the railway commissions of the several States. All suggestions
received from such parties have been given careful consideration, and
many of them have been incorporated in the classification as here
issued. $
FRED W. SweNEY,
Chief Easaminer of Accounts.
(ENERAL INSTRUCTIONS.
The carrier's records shall be kept with sufficient particularity to
show fully the facts pertaining to all entries made in the accounts
provided herein for Income, Profit and Loss, and General Balance
Sheet. Where the full information is not recorded in the general
books, the entries therein shall be supported by other records in which
the full details shall be shown. Such general book entries shall con-
tain sufficient reference to the detail records to permit ready identifi-
cation, and the detail records shall be filed in such manner as to be
readily accessible for examination by representatives of the Interstate
Commerce Commission.
1. When the title and definition of an income, profit and loss, or general
balance-sheet account clearly indicate that it is a summary of Other accounts,
it is not required that a Special ledger a CCOunt shall be kept under Such a title
to include the balances from the accounts usually kept in the ledger, but in
Such case the titles of the Subaccounts in the ledger shall give references by
numbers, titles, or both, to the income, profit and loss, Or general balance-sheet
account prescribed herein of which they are subdivisions.
2. When the COmpensation for the use Of equipment held under lease includes
both rent and maintenance (repairs and depreciation), the lessor shall determine
the proportion. Of groSS rent applicable respectively to rent, repairs, and deprecia-
tion. The lessor shall Credit the portion COvering rent to the appropriate rent
account in Income, the portion COvering repairs to the account Originally charged
Or chargeable with the cost Of the repairs, and the portion covering depreciation
to the accrued depreciation a CCOUnt for equipment. The lessee Shall corre-
spondingly charge the portion COvering rent to the appropriate rent account in
Income, the portion covering repairs to the appropriate equipment repair
account, and the portion covering depreciation to , the appropriate equipment
depreciation account in Operating Expenses.
When the compensation for the use of equipment held under lease covers
only rent and depreciation (the lessee being responsible for the current repairs)
the lessor shall determine the proportion of the gross rent applicable to rent
and that applicable to depreciation. The lessor shall credit the portion Cover-
ing rent to the appropriate rent account in Income, and the portion covering
depreciation to the accrued depreciation account for equipment. The lessee
shall charge the portion covering rent to the appropriate rent account in
Income, and the portion covering depreciation to the appropriate depreciation
account in Operating Expenses.
When the lease provides that the lessee shall be responsible for the main-
tenance of the leased equipment, the lessee shall Charge the estilmated Current
9
42329°–14—2
10 GENERAL INSTRUCTIONS.
depreciation to the appropriate depreciation account in Operating Expenses,
and concurrently credit the amounts thus charged to balance-sheet account No.
778, “Other unadjusted credits.” “To this latter account shall be charged, to
the extent of the credits therein with respect to the equipment, the cost of
restoring the depreciation upon the equipment, or the payments made to the
lessor for the purpose of compensating for the loss through depreciation at the
time the equipment is Surrendered. -
When the accounting in connection with equipment held under lease requires,
under this rule, an apportionment of the compensation as between rent and
maintenance, the lessor shall show the distribution Of the charges upon its bills,
and such distribution shall be adhered to by the lessee.
INCOME ACCOUNTS.
SPECIAL INSTRUCTIONS.
Page
1. Income accounts defined. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - - 13
2. Delayed items. . . . . . . . . . . . • * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 13
3. Uncollectible revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
PRIMARY ACCOUNTS.
I. CREDITS:
501. Railway operating revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i5
502. Revenues from miscellaneous operations . . . . . . . . . . . . . . . . . . . . . . . . 15
503. Hire of freight cars—Credit balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
504. Rent from locomotives -------------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
505. Rent from passenger-train cars ------------... . . . . . . . . . . . . . . . . . . . . 15
506. Rent from floating equipment ................................. ... 15
507. Rent from Work equipment ---------. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
508. Joint facility rent income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I6
509. Income from lease of road -----------. . . . . . . . . . . . . . . . . . . . . . . . . . . . T6
510. Miscellaneous rent income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
511. Miscellaneous nonoperating physical property. . . . . . . . . . . . . . . . . . . . . 17
512. Separately operated properties—Profit .............. . . . . . . . . . . . . . . 17
513. Dividend income -----------------------------------------. . . . . . 17
514. Income from funded Securities ------------. . . . . . . . . . . . . . . . . . . . . . . 17
515. Income from unfunded Securities and accounts ----.......... . . . . . . I8
516. Income from sinking and other reserve funds . . . . . . . . . . . . . . . . . . . . 18
517. Telease of premiums on funded debt . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
518. Contributions from other companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
519. Miscellaneous income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I9
II. DEBITS: -
531. Railway operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
532. Railway tax accruals - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 19
533. Uncollectible railway revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
534. Expenses of miscellaneous operations . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
535. Taxes on miscellaneous operating property . . . . . . . . . . . . . . . . . . . . . . 20%
536. Hire of freight cars—Debit balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
537. Rent for locomotives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
538. Rent for passenger-train cars ------ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
539. Rent for floating equipment ---------. . . . . . . . . . . . . . . . . . . . . . . . . . 21
540. Rent for work equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
541. Joint facility rents --------------------------------------. . . . . . . . 21
542. Rent for leased roads ----------------------------. . . . . . . . . . . . . . . 21
543. Miscellaneous rents.---------------------------. . . . . . . . . . . . . . . . . . 22
544. Miscellaneous tax accruals -------------------.... . . . . . . . . . . . . . . . . . 22
545. Separately operated properties—LOSS -------...... . . . . . . . . . . . . . . . . 22
12
IN COME ACCOUNTS.
TT. DEBITS-Continued.
546. Interest on funded debt ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .… -
547. Interest on unfunded debt ...... . . . . . . . . . . . . . . . * * * * * * * ~ * * * * * * * * =
548. Amortization of discount on funded debt . . . . . . . . . . . . . . . . . . . . . . . .
549. Maintenance of investment organization ... . . . . . . . . . . . . . . . . . . . . . .
550. Tncome transferred to other companies ----------------- - - - - - - - - - - -
551. Miscellaneous income charges........ -- - - - - - - - - - - - - - - - - - - - - - - - - -
552. Income applied to sinking and other reserve funds. . . . . . . . . . . . . . . .
553. Dividend appropriations of income ..... . . . . . . . . . . . . . . . . . . . . . . . . .
554. Income appropriated for investment in physical property.........
555. Stock discount extinguished through income -------------- - - - - -
556. Miscellaneous appropriations of income ------------. . . . . . . . . . . . . . .
Form of income statement
INCOME STATEMENT.
as as sº sº as as e as ºs sº ºn as s tº sº s is tº sº ºn e s sº tº s is sº sº tº sº sº º ºs e º sº as º ºs e º 'º º tº sº º sº as
SPECIAL INSTRUCTIONS.
1. INCOME ACCOUNTS DEFINED.—Income accounts are those designed to show,
as nearly as practicable, for each fiscal period, the total amount of money that a
carrier becomes entitled to receive for services rendered, the returns accrued
upon investments, the accrued costs paid or payable for the services rendered
by it, the losses sustained by it, the amounts accrued for taxes, for use of moneys
and for use of properties of others, and the appropriations made from income
during the period. The net balance of income (Or loss) shall be Carried to
Profit and LOSS.
2. DELAYED ITEMS.—When no provisions have been made through entries in
the accounts Of this classification for anticipating delayed items chargeable or
Creditable to Income, and the amount of any such item is relatively so large
that its inclusion in the accounts for a single year would seriously distort those
accounts, the carrier, if SO authorized upon application to the Interstate Com-
merce COmmission, Shall distribute to Profit and LOSS SO much of the amount as
may be authorized. The carrier, in its application to the Commission, shall
file the full particulars concerning each item and the reasons which in its
judgment indicate the propriety of such accounting.
Delayed items are items representing transactions which occurred before the
Current year. *
3. UNCOLLECTIBLE REVENUE.-An account is provided for revenue charges
against individuals and companies which during the period for which the Income
Account is stated have been determined to be uncollectible. This account is
provided for the purpose of eliminating from the ledger assets of the carrier,
Or Of Writing down to nominal amounts in its asset aCCounts, items of revenue
charges which can not be collected, such as freight charges for which credit has
been allowed, or undercharges discovered after the freight has been delivered.
13
TEXT PERTAINING TO THE INCOME ACCOUNTs.
I. CREDITS,
501.
502.
RAILWAY OPERATING REVENUES.
This account Shall include the total revenues derived from Operations
as shown in the accounts provided in the classification of operating
I’êVēIll]{2S. - -
REVENUES FROM MISCELLANEOUS OPERATIONS.
This account shall include the total revenues derived from the operation
of miscellaneous Operating physical property, such as that the cost of which
is includible in balance-sheet account No. 705, “Miscellaneous physical
property.” e
NOTE.—The income from miscellaneous monoperating physical property shall be
included in account No. 511, “Miscellaneous nonoperating physical property.”
503.
HIRE OF FEREIGHT CARS–CREDIT BALANCE. - -
This account Shall include thee net credit balance of (1) amounts re-
ceivable accrued for the use of the accounting company's freight cars leased
or interchanged, and (2) amounts payable accrued for the use of the
freight cars Of Other carriers, leased Or interchanged, and for the use of
freight cars of individuals and companies not carriers.
NOTE. A.—If the net balance is a debit, it shall be included in account No. 536,
“Hire of freight cars—Debit balance.” -
NOTE. B.-Pent for freight cars included in the lease of road to another company
shall be included in account No. 509, “Income from lease of road.”
NOTE. C.—Rents paid for freight cars used in construction work-train service are
chargeable to the cost of the work. (See general instructions for the classification
504.
of investment in road and equipment, section 4 c.) - - *
NOTE. D.—A fair rent for freight cars used in construction work-train service shall
be credited to the account “Hire of freight cars.” (See general instructions for the
classification of investment in road and equipment, Section 4 C.)
RENT FROM LOCOMOTIVES.
This account shall include amounts receivable accrued as rent for the
use of the accounting company’s locomotives leased or interchanged.
NOTE. A.—Rent for locomotives included in lease of road to another company shall
be included in account No. 509, “Income from lease of road.” -
NoTE B.—A fair rent for locomotives used in construction work-train service shall
be credited to this account. (See general instructions for the classification of invest-
ment in road and equipment, Section 4 c.)
505. RENT FROM PASSENGER-TRAIN CARS.
This account shall include amounts receivable accrued as rent for the
use of the accounting company’s passenger-train Cars leased Ol' interchanged.
NoTD.—Rent for passenger-train cars included in lease of road to another company
shall be included in account No. 509, “Income from lease of road.”
506. . RENT FEROM FLOATING EQUIPMENT.
This account shall include amounts receivable accrued as rent for the
use of the accounting company's floating equipment leased or Chartered.
NOTE.—Rent from floating equipment included in lease of road to another Com-
pany shall be included in account No. 509, “Income from lease of road.”
- 15
16
IN COME ACCOUNTS.
507.
RENT FROM WORK EQUIPMENT. S
This account shall include amounts receivable accrued as rent for the
use of the accounting company's work equipment leased or interchanged.
NOTE. A.—Rent for work equipment included in lease of road to another company
shall be included in account No. 509, “Income from lease of road.”
§08.
509.
NOTE. B.-A fair rent for work equipment used in construction work-train service
shall be credited to this account. (See general instructions for the classification of
investment in road and equipment, section 4 c.)
JOINT FACILITY RENT INCOME. -
This a CCOunt Shall include amounts receivable accrued for rent Of
tracks, yards, terminals, and other facilities owned or controlled by the
accounting company and used jointly with other companies or individuals.
Amounts receivable from other companies in reimbursement for taxes on
property jointly used shall be credited to this account. - •
NOTE.-The portion of the cost of maintenance, operation, or administration of
joint facilities recoverable from others shall be credited to the various joint facility
accounts provided for operating expenses. When the compensation for the use of joint
facilities is a fixed amount or is based upon a charge per passenger, ton, car, or other
unit, it shall be fairly apportioned by the creditor between this account and the
appropriate joint facility Operating expense accounts.
INCOME FROM LEASE OF". ROAD,
This account shall include the entire amount receivable accrued for the
exclusive use of road, tracks, or bridges (including equipment or other
railway property covered by the contract) Owned Or controlled by the
accounting company, whether payable to the accounting company in cash or
disbursed by the lessee on behalf of the accounting company as interest on
funded debt, guaranteed dividends on stock, or otherwise. -
When the lessor company maintains the road and equipment leased, the
cost of maintaining the property rented Shall be charged to this account,
except that when the rent thus receivable for the use of property Other than
equipment is relatively small and the expense of maintenance is not sep-
arable, the entire amount received may be credited to revenue account
No. 142, “Rents of buildings and other property.”
If, under the terms of a lease, the deficit, or any portion of it, resulting
from the lessee company’s operations of the property leased is payable by
the lessor company, the amount thus payable shall be charged to this
account by the lessor.
NOTE. A.—When taxes on leased property are assumed by the lessor, the accruals
of such taxes shall be included in the lessor's account No. 532, “Railway tax
accruals.” {
NOTE. B.-If property the rent of which is chargeable to account No. 542, “Rent
for leased roads,” is sublet by the accounting company, the rent receivable therefor
shall be credited to this account.
510.
MISCELLANEOUS RENT INCOME.
This account shall include such rents of property owned and controlled
by the accounting carrier as are not provided for in the foregoing accounts.
To this account shall be charged the Cost of maintenance Of the property
rented, also specific incidental expenses in connection with such property,
such as the cost of negotiating contracts, advertising for tenants, fees
paid conveyancers, collectors’ commissions, and analogous items.
NOTE. A.—If property the rent of which is chargeable to account No. 543, “Mis-
cellaneous rents,” is sublet by the accounting company, the rent receivable therefor
shall be credited to this account. - - - -
NOTE. B.--Taxes on property the rent of which is creditable to this account shall
be charged to account No. 532, “Railway tax accruals.” -
511.
512.
513.
IN COME ACCOUNTS. 17
NOTE. C.—The rent from property carried in balance-sheet account No. 705, “Mis-
cellaneous physiéal property,’” shall not be included in this account, but in account
No. 511, “Miscellaneous nonoperating physical property.”
NOTE. D.—Rent and other income from real estate acquired for new lines or for
additions and betterments shall be credited to the appropriate road and equipment
accounts until the completion or coming into Service of the property.
MISCELLANEOUS NONOPERATING PEIYSICAL PROPERTY.
This account shall include the net credit balance Of the nonOperating
revenues or income from, and the expenses (including depreciation, but eX-
cluding taxes) of, physical property the cost of which is carried in balance-
sheet account No. 705, “Miscellaneous physical property.”
NOTE. A.—Net debit balances in this account shall be shown in red ink.
NOTE. B.-The revenues from the operation of miscellaneous operating physical
property shall be included in income account No. 502, “Revenues from miscellaneous
operations,” and the expenses of operation shall be included in account No. 534,
“IExpenses of miscellaneous operations.”
SEPARATELY OPERATED PROPERTIES-PROFIT.
This account shall include amounts receivable under the terms Of agree-
ments Or contracts whereby the Surplus resulting from the Operation by
others of properties of Other Companies having a separate Corporate exist-
ence is to be paid, in whole or in part, to the accounting, company.
In determining the amount receivable by the accounting Company, Con-
sideration shall be given not Only to the Operating revenues and Operating
expenses but also to other items of income or deduction which affect that
amount. - -
NOTE. A.—The amount payable by the operating company shall be charged by i
to account No. 550, “Income transferred to other companies.”
NOTE. B.--Dividends or other returns upon securities issued by separately oper-
ated companies, and held or controlled by the accounting company, shall be in-
cluded in account No. 513, “ Dividend income ‘’; No. 514, “Income from funded
securities '' ; No. 515, “Income from unfunded securities and accounts '' ; or No. 516,
“Income from sinking and other reserve funds,” as may be appropriate.
DIVIDEND INCOME. -
This account shall include dividends declared on railway and other
stocks, the income from which is the property Of the accounting company,
whether such stocks are owned by the accounting company and held in its
treasury or deposited in trust, or are coutrolled through lease or otherwise.
Dividends declared shall not be Credited prior to actual Collection unless
their payment is reasonably assured by past experience, guaranty, antici-
pated provision, Or Otherwise.
Accruals of guaranteed dividends may be included in this account if
their payment is reasonably assured.
NOTE. A.—This account shall not include credits for dividends on Stocks issued
or assumed by the accounting company and owned by it, whether pledged as col-
lateral or held in its treasury, in special deposits, or in sinking or other reserve
funds.
NOTE. B.-Dividends on stocks of other companies held in sinking or other reserve
funds shall be credited to account No. 516, “Income from sinking and other reserve
funds.”
INCOME FROM EUNDED SECURITIES.
This account Shall include interest On bonds and Other funded Securities
and On debenture stock Of Other Companies, the income from which is the
property of the accounting company, whether Such securities are owned
by the accounting company and held in its treasury or deposited in trust,
or are controlled through lease or otherwise. Interest accrued shall not
be credited prior to actual collection unless its payment is reasonably
assured by past experience, guaranty, anticipated provision, or otherwise.
42329°–14
514.
3 tº
3.
18
IN COME ACCOUNTS.
515.
516.
517,
At the option of the accounting company there may be included each year
in this account the portion, applicable to the fiscal period, Of the amount
requisite to extinguish, during the interval between the date of acquisition
and the date of maturity, the discount or premium on funded Securities of
Other Companies Owned. Amounts thus credited or charged shall be con-
currently charged or credited to the account in which the cost of the
Securities is Carried.
NOTE. A.—The term funded securities as here used means all unmatured bonds,
notes, and other evidences of indebtedness (except open accounts for advances) none
of which by the terms of the creation of the debt matures until more than one
year after the date of such creation, provided that in case of an obligation maturing
serially, such as car-trust notes, the entire amount shall be included in funded
securities if any portion of the obligation matures later than one year after date
of issue. -
NOTE. B.-This account shall not include interest on funded securities issued
or assumed by the accounting company and owned by it, whether pledged as collateral
or held in its treasury, in Special deposits, or in Sinking or other reserve funds.
NoTE. C.—Interest on funded securities of other companies held in sinking or
other reserve funds shall be included in account No. 516, “Income from sinking and
Other reserve funds.” -
NOTE. D.—Interest accruing after maturity on any securities not in sinking or
other reserve funds shall be included in account No. 515, “Income from unfunded
Securities and accounts.”
INCOME FROM UNFUNDED SECURITIES AND ACCOUNTS.
This account shall include interest on unfunded securities, notes, and
Other evidences of indebtedness payable on demand Or having dates of
maturity one year or less from the date of issue, interest on matured
funded Securities of other Companies, interest On bank balances and On
open accounts, and other analogous items, including discount on short-
term notes. The discount On short-term notes shall be distributed, through
equal monthly credits, over the term of the notes.
NOTE. A.—Interest on assets held in sinking and other reserve funds shall be
included in account No. 516, “Income from sinking and other reserve funds.”
NOTE. B.-Discount on bills for material purchased shall be credited to the
accounts to which is 3harged the cost of the material with respect to which the
discount is allowed. -
INCOME FROM SINIKING AND OTHER RESERVE FUNDS.
This account shall include the income accrued on cash, securities, and
other assets (not including Securities issued or assumed by the accounting
company) held in sinking and other reserve funds.
At the option of the accounting Company there may be included each year
in this account the portion, applicable to the fiscal period, of the amount
requisite to extinguish, during the interval between the date of acquisition
and the date of maturity, the discount Or premium on funded Securities
held in sinking or other reserve funds. Amounts thus credited or charged
shall be concurrently charged or credited to the account in which the cost
of the securities is carried.
NOTE.-Credits to fund reserve accounts representing income on reserve funds
shall be concurrently charged to account No. 552, “Income applied to sinking and
other reserve funds.”
RELEASE OF PREMIUMS ON FUNDED DEBT.
This account shall include, during each fiscal period, such proportion
of the premiums on outstanding funded debt as may be applicable to the
period. This proportion shall be determined in accordance with Special
instructions for balance-sheet aCCOUnts, Section 3.
IN COME ACCOUNTS. 19
518. CONTRIBUTIONS FROM OTHER COMPANIES.
519.
II.
531.
532.
5
This account shall include amounts received or receivable from other com-
panies or individuals, representing the whole or a part of the net deficit of
the accounting company when, under the terms of agreements or contracts,
no obligation for subsequent reimbursement is incurred.
In determining the amount receivable by the accounting company, con-
sideration shall be given not Only to the Operating revenues and Operating
expenses, but also to Other items Of inCOme or deduction which affect that
amount. -
NOTE.-The amount payable shall be charged by the contributing company to
account No. 545, “Separately operated properties—Loss.” -
MISCELLANEOUS INCOME. -
This account shall include all items, not provided for elsewhere, properly
creditable to Income Account during the fiscal period. sº -*
I).EBITS,
RAILWAY OPERATING EXPENSES.
This account shall include the total expenses caused by operations, as
shown in the accounts provided in the classification of operating expenses.
RAILWAY TAX ACCRUAT.S.
This account shall include accruals for taxes of all kinds (including Fed-
eral income tax) relating to railway property (including floating equip-
ment, "if any), operations, and privileges, whether based upon the valua-
tion of the property, amount of stocks and bonds issued or outstanding,
gross or net earnings, dividends declared, number of passengers carried,
quantity of freight transported, length of line Operated Or owned, rolling
Stock Operated or owned, Or Other basis. -
The taxes on leased property shall be included in this account by the
carrier obligated to assume Such expenses under the terms Of the lease.
NOTE. A.—Taxes on leased property paid by one party to the lease and charge-
able to the other party to the lease shall be charged directly to the party bearing
3.
the expense and not included in the Income Account of the party first making
payment.
NOTE. B.-Taxes on other than railway property, Operations, and privileges,
shall be charged to account No. 544, “Miscellaneous tax accruals,” when the amount
is separable from the taxes chargeable to this account.
NOTE. C.—Special assessments for street and other improvements, and special
benefit taxes, such as water taxes and the like, shall be included in Operating
expense accounts or investment accounts, as may be appropriate.
NOTE D.—Amounts received in reimbursement of taxes on property jointly used
shall be credited to account No. 508, “Joint facility rent income.” Amounts paid in
reimbursement of such taxes shall be charged to account No. 541, “Joint facility
rents.”
NOTE, E.-Taxes accruing on new lines under construction or on property acquired
for the extension of existing lines or for addition or betterment purposes before the
facilities are opened for Commercial Operation or the property acquired becomes
available for service shall be charged to road and equipment accountS.
UNCOLLECTIBLE RAILWAY REVENUES.
This account shall include the amount of uncollected revenue charges
against companies and individuals representing tariff charges for service
rendered (including not only the accounting carrier's revenue charges, but
also charges advanced to other carriers) when such amounts have been,
during the period for which the Income Account is stated, determined to be
uncollectible. (See special instructions for the classification of operating
revenues, Section 1.) ...”
20
INCOME ACCOUNTs.
534.
585.
536.
§37.
538.
NOTE. A.—This account shall not be construed to relieve the carrier from its
responsibility for collecting the lawfully established charges.
NOTE. B.-This account shall not include charges for service if it has not been
performed in accordance with the contract and which, on that account, are not
lawfully collectible from companies or individuals, such as freight charges on lost
Or destroyed shipments. º,
EXPENSES OF MISCELLANEOUS OPERATIONS.
This account shall include the total expenses caused by the operation
of miscellaneous physical property the cost of which is includible in bal-
ance-sheet account No. 705, “Miscellaneous physical property.”
NOTE:-The expenses of miscellaneous nonoperating physical property shall be
included in account, No. 511, “Miscellaneous nonoperating physical property.”
TAXES ON MISCELLANEOUS OPERATING PROPERTY.
This account shall include accruals of taxes paid or payable upon mis-
cellaneous operating property, such as that the cost of which is includible
in account No. 705, “Miscellaneous physical property.”
NOTE.-Taxes upon miscellaneous monoperating physical property shall be included
in account No. 544, ‘‘Miscellaneous tax accruals.”
HIRE OF FIREIGHT CARS–DEBIT BATANCE.
This account shall include, except as provided for in the classification
for investment in road and equipment, the net debit balance of (1) amounts
receivable accrued for the use of the accounting company's freight cars
leased or interchanged, and (2) amounts payable accrued for the use of the
freight cars of other carriers, leased or interchanged, and for the use of
freight cars of individuals and companies not carriers. (See general in-
Structions, section 2.)
NOTE. A.—If the net balance is a credit, it shall be included in account No. 503,
“Hire of freight cars—Credit balance.” -
NOTE. B.-Rent for freight cars included in the lease of road to the accounting
company shall be included in account No. 542, ‘‘ Rent for leased roads.”
NOTE C.—Interest accrued on equipment obligations shall be charged to account
No. 546, “Interest on funded debt,” or No. 547, “Interest on unfunded debt,” as
may be appropriate. -
NOTE. D.—Rents paid for freight cars used in construction work-train service are
chargeable to the cost of the work. (See general instructions for the classification
of investment in road and equipment, section 4 c.) *
NOTE. E.-A fair rent for freight cars used in construction work-train Service shall
be credited to account. “Hire of freight cars.” (See general instructions for the
classification of investment in road and equipment, section 4 c.)
RENT FOR LOCOMOTIVES.
This account shall include amounts payable accrued for the use of the
locomotives of others, leased or interchanged, except as provided for in
the classification for investment in road and equipment. (See general in-
structions, section 2.) - .
NOTE. A.—The rent for locomotives included in the lease of road to the accounting
company shall be included in account No. 542, ‘‘Rent for leased roads.”
NOTE. B.-Interest accrued on equipment obligations shall be charged to account
No. 546, “Interest on funded debt,” or No. 547, “Interest on unfunded debt,” as
may be appropriate. -
NOTE C.—Rent paid for locomotives used in construction work-train service is
chargeable to the cost of the work. (See general instructions for the classification
of investment in road and equipment, section 4 c.)
RENT FOR PASSENGER-TRAIN CARS.
This account shall include amounts payable accrued for the use of the
passenger-train cars of others, leased or interchanged, and also for use
Of Sleeping CarS Operated under contract arrangement, except as provided
INCOME ACCOUNTs. 21.
for in the classification for investment in road and equipment. (See general
instructions, section 2.) ~ - -
NOTE. A.—The rent for passenger-train cars included in the lease of road to the
accounting company shall be included in account No. 542, “Rent for leased roads.”
NOTE. B.-Interest accrued on equipment obligations shall be charged to account
No. 546, “Interest on funded debt,” or No. 547, “Interest on unfunded debt,” as
may be appropriate.
540.
541.
542.
. RENT FOR FLOATING EQUIPMENT.
This account Shall include amounts payable accrued for the use of the
floating equipment of others, leased or chartered, except as provided for
in the Classification for investment in road and equipment. (See general
instructions, section 2.)
NOTE. A.—The rent of floating equipment included in the lease of road to the
accounting company shall be included in account No. 542, ‘‘ Rent for leased roads.”
NOTE B.—Interest accrued on equipment obligations shall be charged to account
No. 546, “Interest on funded debt,” or No. 547, “Interest on unfunded debt,” as
may be appropriate.
RENT FOR WORK FOUIPMENT.
This account shall include amounts payable accrued for the use of the
work equipment of Others, leased or interchanged, except as provided for in
the classification for investment in road and equipment. (See general
instructions, section 2.)
NOTE. A.—The rent for work equipment included in the lease of road to the account-
ing company shall be included in account No. 542, ‘‘Rent for leased roads.” -
NOTE. B.-Interest accrued on equipment obligations shall be charged to account
No. 546, “Interest on funded debt,” or No. 547, “Interest on unfunded debt,” as
may be appropriate. -
NOTE. C.—Rent paid for work equipment when used in construction work-train serv-
ice is chargeable to the cost of the work. (See general instructions for the classifi-
cation of investment in road and equipment, Section 4 c.)
JOINT FACILITY RENTS. -
This account shall include amounts payable accrued as rent for tracks,
yards, terminals, and other facilities owned or controlled by other carriers,
companies, or individuals, and in the joint use of which the accounting
company participates. L/
Amounts paid or payable by the accounting company in reimbursement
for taxes on property jointly used shall be charged to this account.
NOTE.-The cost of maintenance, operation, or administration of joint facilities,
chargeable to the accounting company, shall be charged to the Various joint facility
accounts provided for operating expenses. When the compensation for the use of
joint facilities is a fixed amount or is based upon a charge per passenger, ton, Car, or
other unit, it shall be fairly apportioned between this account and the appropriate
joint facility operating expense accounts. This apportionment shall be made by the
operating company, and shall be followed by the accounting company. 'º'
RENT FOR TEASED ROADS.
This account shall include amounts payable accrued as rent for roads,
tracks, or bridges (including equipment and other railway property covered
by the contract) of other companies, held under lease or other agreement by
the terms of which exclusive use and control for operating purposes are
secured. The entire amount of rent payable by the lessee in accordance with
the agreement shall be included in this account, whether paid to the lessor
in cash or disbursed by the lessee, on behalf of the lessor, as interest on
funded debt, guaranteed dividends on stock, or otherwise. (See general
instructions, Section 2.)
NOTE. A.—When taxes on leased property are assumed by the lessee the accruals
of such taxes shall be included in the lessee’s account No. 532, “Railway tax ac-
cruals.”
22
IN COME ACCOUNTS.
543.
544.
545.
546.
NOTE. B.-If, under the terms of a lease, the deficit or any portion of it resulting
from the lessee's operation of the property leased is payable by the lessor company,
the amount shall be charged to account No. 509, “Income from lease of road,” by
the lessor and credited to this account by the lessee.
NOTE. C.—If property, the rent of which is chargeable to this account, is sublet by
the accounting company to others, the rent from the sublease shall be credited to
account No. 509, “Income from lease of road.”
NOTE. D.—Payments for the exclusive use of road and equipment maintained by
the lessor and used in the accounting company's operations (when considerable in
amount and when not provided for in the classifications of operating expenses) shall
be divided into two portions: One, representing cost of maintenance, shall be charged
to the appropriate maintenance accounts and the other, representing rent (amount
applicable to the investment in the property), shall be charged to this account.
MISCELLANEOUS RENTS.
This account shall include rents payable accrued on property held by
the accounting company under lease or other agreement and not properly
chargeable to any of the foregoing accounts.
NOTE. A.—This account shall not include rents provided for in the operating
expense accounts.
NoTE. B.-If property, the rent of which is chargeable to this account, is sublet
by the accounting company to others, the rent from the sublease shall be credited
to account No. 510, “Miscellaneous rent income.”
NOTE. C.—Payments for the exclusive use of miscellaneous property maintained by
the lessor and used by the accounting company shall be divided into two portions :
One, representing the cost of maintenance, shall be charged to the appropriate
operating accounts, and the other, representing rent (amount applicable to the invest-
ment in the property), shall be charged to this account. The bill rendered by the
creditor shall show the distribution of the payments as between maintenance and
rent, and such distribution shall be adhered to by the debtor.
MISCELLANEOUS TAX ACCRUALS. -
This account shall include all accruals for taxes not provided for else-
where, such as taxes on securities owned, taxes on income from securities
owned, and taxes on miscellaneous nonOperating physical property the cost
of which is includible in balance-sheet account No. 705, “Miscellaneous
physical property.”
NOTE. A.—When the proper separation of any particular tax is not ascertainable
the entire amount shall be included in account No. 532, “Railway tax accruals.”
NOTE B.—Taxes upon miscellaneous operating property shall be charged to
account No. 535, “Taxes on miscellaneous operating property.”
SEPARATELY OPERATED PROPERTIES LOSS.
This account shall include amounts payable under the terms of agree-
ments or contracts whereby the deficit resulting from the operation by
others of properties of other companies having a separate corporate exist-
ence is to be paid, in whole or in part, by the accounting company.
In determining the amount payable by the accounting company, con-
sideration shall be given not only to the operating revenues and operating
expenses, but also to other items of income or deduction which affect that
amount.
NOTE. A.—The amount receivable by the operating company shall be credited by
it to account No. 518, “Contributions from other companies.” -
NOTE. B.--Dividends or other returns upon securities issued by separately oper-
ated companies and held or controlled by the accounting company shall not be
included in this account to offset a deficit payable, but in account No. 513, “ Dividend
income '’; No. 514, “Income from funded securities”; or No. 515, “Income from
unfunded securities and accounts,” as may be appropriate.
INTEREST ON FUNDED DEBT.
This account shall include the current accruals of interest on all classes
of debt, the principal of which is includible in balance-sheet account No. 755,
“Funded debt unmatured,” or No. 757, “Nonnegotiable debt to affiliated
547.
548.
549.
z’ IN COME ACCOUNTS. 28
companies’’; also interest accruals on debenture stock and on receiver's
certificates issued for a term of more than one year. This account Shall
be kept in such form that the interest on debenture stock, on receivers'
certificates, and on other classes of funded debt may be shown Separately
in the annual report to the Commission.
NOTE. A.—This account. Shall not include charges for interest on funded debt
obligations issued or assumed by the accounting company and owned by it, whether
pledged as collateral or held in its treasury, in special deposits, or in sinking or other
reserve funds. (See account No. 552, “Income applied to sinking and other reserve
funds.”)
NOTE. B.--When funded debt is incurred for new lines or extensions, or for addi-
tion and betterment purposes, the accruals of interest on such funded debt (less
interest received on unexpended balances), to the date of completion or coming into
service of the property so acquired shall be included in the road and equipment
accounts.
INTEREST ON UNFUNDED DEBT.
This account shall include interest accrued on unfunded debt, such as
short-term notes payable On demand Or having dates of maturity One year
or less from dates Of issue, interest On receiver’s Certificates issued for a
term of one year or less, interest on matured funded securities and open
aCCOUnts including interest on overcharge claims, discount and expense on
demand and short-term loans, interest On receipts Outstanding for install-
ments paid on capital stock, and Other analogous items. The discount On
short-term notes, if of a considerable amount, shall be distributed, through
equal monthly charges, Over the term of the notes. -
NOTE.--When short-term notes or other evidences of unfunded indebtedness are
issued for new lines or extensions or for addition and betterment purposes the
accrual of interest to the date of completion or coming into service of the property
shall be included in the road and equipment accounts.
AMORTIZATION OF DISCOUNT ON FUNDED DEBT.
This account shall be charged during each fiscal period with the pro-
portion of the discount and expense on funded debt obligations applicable
to that period. This proportion shall be determined according to a rule
the uniform application of which through the interval between the date
of sale and the date of maturity will extinguish the discount and expense
on funded debt. The charge to this account for any period must not be
either greater or less than the proportion of the balance remaining un-
amortized applicable to that period so long as any portion Of the discount
and expense remains unextinguished. (See special instructions for balance-
sheet accounts, section 3.)
NOTE.-The accounting company may, at its option, charge to profit and loss
account No. 617, “Debt discount extinguished through surplus,” all or any portion of
the discount and expense on funded debt remaining at any time unextinguished.
MAINTENANCE OF INVESTMENT ORGANIZATION.
This account shall include the directly assignable organization and ad-
ministration expenses of the accounting Company which are incident to its
investments in leased or nonoperating physical property, and in stocks,
bonds, or other Securities. r -
ITEMS OF EXPENSE.
Advertising annual reports (lessor companies only).
Calls for bonds in accordance with sinking fund provisions of mortgages.
Directors’ fees. -
Printing and mailing dividend checks.
Publishing and mailing annual reports and other corporate statements to whareholders.
24 IN COME ACCOUNTS.
Publishing notices of declaration of dividends.
Law expenses.
Office expenses.
Salaries of officers, clerks, and attendants.
Stationery and printing. -
NOTE.-Organization and administration expenses incident to railway operation are
provided for in Operating expense general account VII, General.
550. INCOME TRANSFERRED TO OTHER COMPANIES.
This account shall include the whole or any portion of the income of
the accounting Company payable to another company under the terms of
agreements Or Contracts without obligation for reimbursement.
In determining the amount payable by the accounting company, considera-
tion shall be given not Only to Operating revenues and operating expenses,
but also to other items of income or deduction which affect that amount.
NOTE. A.—The amount receivable by the other company shall be credited by it to
account, No. 512, “Separately operated properties—Profit.”
NOTE. B.-Dividends or other payments upon securities issued or assumed by
the accounting company shall not be included in this account.
551. MISCELLANEOUS INCOME CHARGES.
This account shall include all items in the nature of fixed charges prop-
erly chargeable to Income ACCOunt for a fiscal period not provided for else-
where, such as “normal” and “additional” income tax upon the interest on
accounting company’s funded debt when assumed by it.
552. INCOME APPLIED TO SINKING AND OTHER RESERVE FUNDS.
This account shall include amounts applied to sinking and other reserve
funds from income, whether definite appropriations from income; allot-
ments or payments of definite amounts from income under the terms of
mortgages, deeds of trust, or other contracts that provide for such allot-
ments or payments; or accretions representing interest or other returns
accrued. On the Contents Of Such funds and required to be retained therein.
NOTE. A.—The amounts charged to this account shall be concurrently credited to
balance-sheet accounts Nos. 773, 781, 782, and 783, as may be appropriate.
NOTE. B.-Similar appropriations made from surplus shall be charged to profit and
loss account No. 613, “Surplus applied to sinking and other reserve funds.”
553. DIVIDEND APPROPRIATIONS OF INCOME.
This account shall include amounts definitely declared payable from
the income of the fiscal period, as dividends on actually outstanding capital
stock issued or assumed by the accounting company, other than debenture
stock. (See definition of the several classes of capital stock in balance-
sheet account No. 751, “Capital stock.”) If a dividend is not payable in
cash the consideration shall be described in the entry with sufficient particu-
larity to identify it. -
This account shall be subdivided so as to show separately the dividends
On the various subclasses of Capital Stock.
3. TNOTE. A.—Interest accrued on debenture stock shall be charged to account No. 546,
“Interest on funded debt.”
NOTT, B.--This account shall not include charges for dividends on capital stock
issued or assumed by the accounting company and owned by it, whether pledged as .
collateral, or held in its treasury, in special deposits, or in sinking or other reserve
funds. (See account No. 552, “Income applied to sinking and other reserve funds.”)
NOTE. C.—This account shall be used when the appropriations are definitely made
shargeable to Income. Similar appropriations made from surplus shall be charged
to profit and loss account No. 614, “ Dividend appropriations of surplus.”
* IN COME ACCOUNTS. 25
554. INCOME APPROPRIATED FOR INVESTMENT IN PHYSICAL PROP-
555.
ERTY. -
This account Shall include amounts definitely appropriated from income
to be applied for the construction or acquisition of new lines and extensions
and of additions to and betterments of property the cost of which is charge-
able to road and equipment accounts or applied for the construction or
acquisition of property the cost of which is includible in balance-sheet
account No. 705, “Miscellaneous physical property.”
Records of the accounting carrier shall be so kept that the appropria-
tions charged to this account for any fiscal period may be distinguished as
relating to (a) amounts expended during preceding fiscal periods, (b)
amounts expended during the current fiscal period, and (c) amounts held
in reserve.
The records shall also show separately appropriations for investment in
road and equipment and for investment in miscellaneous physical property.
NoTT. A.—Similar appropriations made from surplus shall be charged to profit
and loss account No. 615, “Surplus appropriated for investment in physical prop-
erty.” -
NOTE. B.-The amounts charged to this account shall be concurrently credited
to balance-sheet account No. 779, “Additions to property through income and sur-
plus,” to No. 782, “Miscellaneous fund reserves,” or to No. 783, “Appropriated
surplus not specifically invested,” as may be appropriate.
STOCK DISCOUNT EXTINGUISHED THROUGH INCOME.
This account shall include amounts definitely appropriated from income
to reduce or extinguish the amount of discount on capital stock issued by
the accounting company. (See balance-sheet account No. 724, “Discount
on capital stock.”)
NOTE.-Similar appropriations made from surplus shall be charged to profit and
loss account No. 616, “ Stock discount extinguished through Surplus.”
. MISCELLANEOUS APPROPRIATIONS OF INCOME,
Except as provided in account No. 552, “Income applied to sinking and
Other reserve funds,” this account Shall include amounts definitely appropri-
ated from income for the discharge of the principal (less the discount, if any,
suffered at the time of sale) of any indebtedness incurred in the acquisition
or improvement of property carried in the road and equipment accounts;
also amounts similarly appropriated to provide a reserve for doubtful ac-
counts, and for other purposes not provided for elsewhere.
NOTE.-Similar appropriations made from surplus shall be charged to profit and
loss account No. 618, “Miscellaneous appropriations of Surplus.”
42329°–14—4
FORM OF INCOME STATEMENT.
EXPLANATORY NOTE:-The classified form of income statement is designed to
Show the financial changes resulting from transportation operations and other
business of the accounting company during any specified period.
I. OPERATING IN COME :
501. *Railway Operating revenues.
531. *Railway Operating expenses.
* Net revenue from railway operations.
532. *Railway tax accruals.
533. *Uncollectible railway revenues.
*Railway Operating income.
502. Revenues from miscellaneous operations.
534. Expenses of miscellaneous Operations.
Met revenue from miscellaneous Operations.
535. Taxes on miscellaneous operating property.
Miscellaneous Operating income.
Total Operating income.
II. NONOPERATING INCOME:
503. Hire Of freight cars—Credit balance.
504. Rent from locomotives.
505. Rent from passenger-train cars.
506. Rent from floating equipment.
507. Rent from Work equipment.
508. Joint facility rent income.
509. Income from lease of road.
510. Miscellaneous rent income.
511. Miscellaneous nonOperating physical property.
512. Separately operated properties—Profit.
513. Dividend income.
514. Income from funded Securities.
515. Income from unfunded Securities and accounts.
516. Income from sinking and other reserve funds.
517. Release of premiums on funded debt.
518. Contributions from Other COmpanies.
519. Miscellaneous income.
Total nonOperating income.
Gross income (or loss).
* Includes operations of water lines, if any.
27
28
IN COME ACCOUNTS.
III. DEDUCTIONS FROM GROSS INCOME:
536.
537.
538.
539.
540.
541.
542.
543.
544.
545.
546.
547.
548.
549.
550.
551.
Hire of freight cars—Debit balance,
Rent for IOCOmotives.
Rent for passenger-train cars.
Rent for floating equipment.
Rent for work equipment.
Joint facility rents. -
Rent for leased roads.
Miscellaneous rents.
Miscellaneous tax a CCruals.
Separately Operated properties—LOSs.
Interest. On funded debt.
Interest on unfunded debt.
AmOrtization. Of disCOunt On funded debt.
Maintenance Óf investment Organization.
Inéome transferred to other companies.
Miscellaneous income charges.
Total deductions from groSS income.
Net income (or loss).
IV. DISPOSITION OF NET INCOME :
552.
553.
554.
555.
§56.
Income applied to sinking and other reserve funds.
Dividend appropriations Of income.
InCOme appropriated for investment in physical property.
Stock discount extinguished through income.
Miscellaneous appropriations of inCOme.
Total appropriations,
Income balance transferred to credit (or debit) of Profit
and LOSS.
1. Profit and loss accounts defined
2. Delayed items
PROFIT AND LOSS ACCOUNTS.
SPECIAL INSTRUCTIONS.
TRIMARY ACCOUNTS.
I. CREDITS:
601.
602.
603.
604.
605.
606.
607.
Credit balance (at beginning of fiscal period)......... . . . . . . . . . . . . .
Credit balance transferred from income...... . . . . . . . . . . . . . . . . . . . . .
Frofit on road and equipment sold... . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Delayed income credits.-------------. . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrefundable overcharges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Donations----------------------------------- - - - - - - - - - - - - - - - - - - - -
II. T)EBITS:
Debit balance (at beginning of fiscal period)--------................
Tebit balance transferred from income..... . . . . . . . . . . . . . . . . . . . . . .
Surplus applied to sinking and other reserve funds..... . . . . . . . . . . .
Dividend appropriations of surplus-------------.......... . . . . . . .
Surplus appropriated for investment in physical property. . . . . . . . .
Stock discount extinguished through surplus--------. . . . . . . . . . . . . . -
T}ebt discount extinguished through surplus-------..... . . . . . . . . . . .
Miscellaneous appropriations of Surplus...... . . . . . . . . . . . . . . . . . . . . .
Loss on retired road and equipment----------------. . . . . . . . . . . . . . .
Delayed income debits.----------------------------....... . . . . . .
Miscellaneous debits------------------------------------... . . . . . .
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * = * * * * * * * * * * * = e = e = * ~ * * * *s s
33
33
33
33
33
33
34
611,
612.
613.
614.
615.
616.
617.
618.
619.
620.
621.
34
34
34
34
35
35
35
35
36
36
SPECIAL INSTRUCTIONS.
1. PROFIT AND LOSS ACCOUNTS DEFINED.—Profit and loss accounts are those
designed to show the changes in the corporate surplus or deficit during each
fiscal period, as effected by the operations and business transactions during that
period, by any disposition of net profits made Solely at the option of the account-
ing Company, by accounting adjustments of matters not properly attributable to
the period, Or by miscellaneous gains or losses not provided for elsewhere; and
to show also the unappropriated Surplus of the carrier at the date of the bal-
ance Sheet.
2. DELAYED ITEMS.–When no provisions have been made through entries in
the operating revenue, operating expense, or other income accounts for antici-
pating delayed items chargeable or creditable thereto, and the amount of any
Such item is relatively SO large that its inclusion in the accounts for a Single
year would seriously distort those accounts, the carrier, when SO authorized
upon application to the Interstate Commerce Commission, shall distribute to
Profit and LOSS So much of the amount as may be authorized. The application
to the Commission for exceptional accounting for delayed items shall give full
Darticulars concerning each item and the reasons which, in the carrier’s judg-
Iment, indicate the need for a special accounting rule.
Delayed items are items representing transactions which occurred before the
current fiscal year.
31
TEXT PERTAINING TO PROFIT AND LOSS ACCOUNTS.
I. CREDITS,
601.
602.
603.
604.
605.
CREDIT BALANCE (AT BEGINNING OF FISCAL PERIOD).
This account shall include the net credit balance in the Profit and Loss
Account at the beginning of the fiscal period.
CREDIT BALANCE TRANSFERRED FROM INCOME.
This account Shall Show the net credit balance brought forward from
the Income Account for the fiscal period.
PROFIT ON ROAD AND EQUIPMENT SOLD.
This account shall include the proceeds from the sale of road and equip-
ment property in excess of the amount at which such property was carried
in the property account at the time of sale.
DELAYED INCOME CREDITS.
This account shall include relatively large credits relating to operating
revenue, Operating eXpenSe, almd Other income accounts of previous fiscal
periods.
This account Shall be used only after permission of the Interstate Com-
merce Commission has been obtained. (See section 3 of the general instruc-
tions for the Classification of operating revenues and operating expenses,
Section 2 of the special instructions for income accounts, and section 2 of the
Special instructions for this classification.)
NOTE.-Except as provided for above, delayed items relating to operating revenue,
operating expense, and other income items shall be included in the appropriate reve-
nue, expense, or other income accounts for the fiscal period in which the audit of the
itemS OCCurS. a-
UNREFUNDABLE OVERCHARGES.
This account Shall include the amount of revenue Overcharges which are
determined during the current fiscal period to be unrefundable. (See sec-
tion 1 of special instructions for the classification of operating revenues.)
DONATIONS.
This account shall include amounts, creditable to surplus, Of Cash or its
equivalent in estimated money value at the time of acquisition of lands or
other property donated by individuals or companies for the Construction or
acquisition of property. It shall also include donations made by individuals
and companies in connection with the construction of new lines for the pur-
pose of compensating the carrier for loss anticipated during the early
period of Operation.
Any advances made by individuals or companies with absolute or condi-
tional provision for partial or complete reimbursement Shall not be con-
sidered a donation prior to the fulfillment of all conditions, and then Only
to the extent to which the liability for reimbursement is nullified or nega-
tived. Prior to such determination the amounts received Shall be Credited
in balance-sheet account No. 778, “Other unadjustèd credits.”
606.
NOTE.—Donations made by States, municipalities, and other public corporations
as their contributions toward the construction or acquisition of property shall be
included in balance-sheet account No. 754, “Grants in aid of construction.”
33
34
PROFIT AND LOSS.
607.
II.
611.
612.
MISCELLANEOUS CREDITS.
This account shall include amounts, not provided for elsewhere, trans-
ferred from other accounts to Profit and ILoss, and amounts representing
increases of resources not properly assignable to the income accounts.
Among the items which shall be included in this account are—
Adjustments or cancellations of balance-sheet accounts, -
Cancellation of balance-sheet accounts representing unclaimed Wages and
vouchered accounts written off because of carrier's inability to locate the
creditor, . r
Profit derived from the sale of investment securities, -
Profit derived from the sale of property carried in balance-sheet account
No. 705, “Miscellaneous physical property,” -
Credits resulting from adjustments required to bring to par securities.
issued or assumed by the accounting company and reacquired at a cost less
than the par value, -
Premiums on capital stock at the time of its reacquirement (see special
instructions for balance-sheet accounts, section 2), -
TJnreleased premiums on funded debt reacquired before maturity (see
special instructions for balance-sheet accounts, section 3), :
Collections of old accounts previously written off.
NOTE.-Revenue overcharges when determined to be unrefundable shall be cred-
ited to account No. 605, “Unrefundable overcharges.”
DEBITS,
DEBIT BATANCE (AT BEGINNING OF FISCAL PERIOD).
This account Shall include the debit balance in the Profit and LOSS AC-
count at the beginning of the fiscal period.
DEBIT BATANCE TRANSFERRED FROM INCOME.
This account shall show the net debit balance brought forward from the
Income Account for the fiscal period. .
613.
614.
SURPLUS APPLIED TO SINKING AND OTHER PRESERVE FUNDS.
This account shall include amounts definitely appropriated from sur-
plus and applied to Sinking and Other reserve funds; and allotments or
payments of definite amounts from Surplus into sinking and other reserve
funds under the terms of mortgages, deeds of trust, Or other contracts that
provide for Such allotments or payments.
NOTE. A.—The amounts charged to this account shall be concurrently credited
to the appropriate balance-sheet accounts. *
NOTE. B.-Similar appropriations made from income shall be charged to income
account No. 552, “Income applied to sinking and other reserve funds.”
DIVIDEND APPROPRIATIONS OF SURPLUS.
This account shall include amounts definitely declared payable from
surplus as dividends on actually outstanding capital stock issued or assumed
by the accounting company, other than debenture stock. (See definition of
the Several classes of capital stock in balance-sheet account No. 751, “Capi-
tal stock.”) If a dividend is not payable in cash the consideration shall
be described in the entry with sufficient particularity to identify it.
This account shall be Subdivided so as to show Separately the divi-
dends on the various subclasses of capital stock. -
NOTE. A.—Interest accrued on debenture Stock shall be charged to income account
No. 546, “Interest on funded debt.” & -
NOTE. B.-This account shall not include charges for dividends on capital stock
issued or assumed by the accounting company and owned by it, whether pledged as
PROFIT AND LOSS. - . 35
collateral or held in its treasury, in special deposits, or in sinking or other reserve
funds. (See account No. 613, “Surplus applied to sinking and other reserve funds.”)
NOTE. C.—Similar appropriations made from income shall be charged to income
account No. 553, “ Dividend appropriations of income.”
615. SURPLUS APPROPRIATED FOR INVESTMENT IN PHYSICAL PROP-
ERTY. -
This account shall include amounts definitely appropriated from sur-
plus, to be applied for the Construction or acquisition of new lines and
extensions and of additions to and betterments of property the cost of which
is includible in the road and equipment accounts or applied for the construc-
tion, acquisition, or improvement of property the cost of which is includible
in balance-sheet account No. 705, “Miscellaneous physical property,” and
also the amount of donations in aid of construction, made by individuals
and companies, not subject to distribution as dividends.
Records of the accounting carrier shall be So kept that the appropria-
tions Charged to this account for any fiscal period may be distinguished as
relating to (a) amounts expended during preceding fiscal periods, (b)
amounts expended during the current fiscal period, and (c) amounts held
iri reserve. -
NOTE A.—Similar appropriations made from income shall be charged to income
account No. 554, “Income appropriated for investment in physical property.”
NOTE. B.—The amounts charged to this account shall be concurrently credited to
balance-sheet account No. 779, “Additions to property through income and sur-
plus,” to No. 782, “Miscellaneous fund reserves,” or to No. 783, “Appropriated sur-
plus, not specifically invested,” as may be appropriate.
616. STOCK DISCOUNT EXTINGUISHED THROUGH SURPLUS.
This account Shall include amounts definitely appropriated from surplus
to reduce or extinguish the amount of discount on capital stock issued by
the accounting company. (See Special instructions for balance-sheet
accounts, section 2.)
NOTE.-Similar appropriations made from income shall be charged to income
account No. 555, “Stock discount extinguished through income.”
617. DEBT DISCOUNT EXTINGUISHED THROUGH SURPLUS.
This account shall include appropriations of surplus made, at the option
Of the accounting company, to reduce or extinguish the discount and ex-
pense on funded debt. (See income account No. 548, “Amortization of
discount On funded debt,” and balance-sheet account No. 725, “Discount On
funded debt.”)
618. MISCEILANEOUS APPROPRIATIONS OF SURPLUS.
This account shall include amounts definitely appropriated from surplus
to provide a reserve for doubtful accounts and, except as provided in
account No. 613, “Surplus applied to sinking and other reserve funds,” for
the discharge of the principal (less the discount, if any, suffered at the time
Of Sale) of any indebtedness incurred in the acquisition or improvement of
property carried in the road and equipment accounts; also other amounts
appropriated from Surplus and not provided for elsewhere.
NOTE.-Similar appropriations from income shall be charged to income account No.
556, “Miscellaneous appropriations of income.”
619. LOSS ON RETIRED ROAD AND EQUIPMENT.
This account shall include charges to Profit and Loss as provided for
in the classification of investment in road and equipment, on account of
(1) road which has been abandoned, sold, or otherwise retired; and (2)
equipment which has been abandoned, sold, or otherwise retired. (See
general instructions, section 8, and general account II, Equipment, in the
classification of investment in road and equipment.)
36
PROFIT AND LOSS.
620. DELAYED INCOME DEBITS. -
621.
This account shall include relatively large debits relating to Operating
revenue, Operating expense, and other income accounts of previous fiscal
periods.
This account shall be used only after permission of the Interstate Com-
merce Commission has been obtained. (See Section 3 Of the general instruc-
tions for the classification of Operating revenues and Operating expenses,
Section 2 of the special instructions for the income accounts, and Section 2
of the special instructions for this classification.)
NOTE. A.—Except as provided above, delayed items relating to operating revenue,
operating expense, and other income items shall be included in the appropriate
revenue, expense, or other income account for the fiscal period in which the audit
of the itemS OCCurS.
NOTE. B.-All entries in this account shall be made in such detail as will indi-
cate the operating revenue, operating expense, or other income accounts to which
they relate.
MISCELLANEOUS DEBITS.
This account shall include amounts, not provided for elsewhere, chargeable
to Profit and Loss from other accounts, amounts written off in consequence
of adjustments, and payments not properly chargeable to the income
accountS. Among the items which shall be charged to this account are—
Adjustments Or cancellations of balance-Sheet accounts,
LOSSes or deficits not properly chargeable to Income, such as uncollectible
bills (other than bills covering revenue charges) for which no reserve has
been provided,
Losses resulting from the sale of investment securities,
Losses resulting from the sale, destruction, or abandonment of property
carried in balance-sheet account No. 705, “Miscellaneous physical property,”
Debits resulting from adjustments required to bring to par Securities
iSSued. Or a SSumed by the accounting Company and reacquired at a cost
exceeding the par value, -
Adjustments Of the difference between the ledger value and estimated
Value Of land withdrawn from railway service and charged to account
No. 705, “Miscellaneous physical property.” (See general instructions in
the classification of investment in road and equipment, section 10.)
Discounts on Stock remaining unextinguished at the time of its
reacquirement,
Unextinguished discounts on funded debt reacquired before maturity,
Payments of old accounts previously written off,
Penalties and fines for violation of the Act to Regulate Commerce, or
other Federal laws, when not specifically provided for elsewhere.
NOTE.-Revenue charges when determined to be uncollectible shall be charged to
income account No. 533, “Uncollectible railway revenues.”
DEBITS:
701.
702.
703.
704.
705.
706.
707.
708.
709.
710.
711.
712.
713.
714.
715.
716.
717.
718.
719.
720.
721.
722.
723.
724.
725.
726.
727.
728.
729.
. Balance-sheet accounts
. Discount and premium on capital stock
. Discount, expense, and premium on funded debt
. Contingent assets and liabilities
. Book value of securities owned
. Income from sinking fund assets
. Current assets
GENERAL BALANCE SHEET ACCOUNTs.
SPECIAL INSTRUCTIONS.
PRIMARY ACCOUNTS.
Investment in road and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Improvements on leased railway property. . . . . . . . . . . . . . . . . . . . . . . .
sinking funds-------------------------------------------------.
Deposits in lieu of mortgaged property Sold. . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous physical property----------. . . . . . . . . . . . . . . . . . . . . . . .
Investments in affiliated companies.... . . . . . . . . . . . . . . . . . . . . . . . . . .
Other investments.---------------------------------------------
Cash ---------------------------------------------------------- .
Demand loans and deposits. -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Time drafts and deposits-------------------------. . . . . . . . . . . . . .
Special deposits-------------------------------------------------
Loans and bills receivable. -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Net balance receivable from agents and conductors. . . . . . . . . . . . . . . .
Miscellaneous accounts receivable-----------. . . . . . . . . . . . . . . . . . . . .
Material and supplies-------------------------------------------
Interest and dividends receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rents receivable------------------------------------------------
Other current assets. ----------------------. . . . . . . . . . . . . . . . . . . . .
Working fund advances----------------------. . . . . . . . . . . . . . . . . . . . .
Insurance and other funds. . . . . . . . . . . . . . . . . . . . . . - - - - - - - - - - - - - - - -
Other deferred assets-------------------------------. . . . . . . . - - - - -
Rents and insurance premiums paid in advance . . . . . . . . . . . . . . . . .
Discount on capital stock----------------------------------------
Discount on funded debt---------------. . . . . . . . . . . . . . . . . . . . . . . . . .
Property abandoned chargeable to Operating Expenses... . . . . . . . .
Other unadjusted debits....... ---------------------------------
Securities issued or assumed—Unpledged . . . . . . . . . . . . . . . . . . . . . . . .
Securities issued or assumed—Pledged ............ . . . . . . . . . . . . . . . .
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
tº º - - - - - - w = * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * = - -
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * = a, sº se - - -
* * * * * * * * * * - - - - - * * * * * * * * * * * * * * * * * * * * * * ~ *
• * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
43
43
43
44
44
44
45
45
46
46
46
46
46
46
46
47
47
47
47
47
47
48
48
48
48
48
48
49
38 . GENERAL BALANCE SEIEET.
CREDITS:
751. Capital stock----------------------------------------------------
752. Stock liability for conversion............ . . . . . . . . . . . . . . . . . . . . . . . . .
753. Premium on capital stock-------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
754. Grants in aid of construction..
755. Funded debt unmatured......
tº º ºs ºs º ºs º a º ºr g º ºs e as a sm as at as e º ºs º ºs e º gº ºn º ºs tº sº sº º
756. Receiver's certificates.------------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
757. Nonnegotiable debt to affiliated companies.......................
758. Loans and bills payable------------------. . . . . . . . . . . . . . . . . . . . . . .
759. Traffic and car-Service balances payable.... . . . . . . . . . . . . . . . . . . . . . .
760. Audited accounts and wages payable. . . . . . . .--------------------
761. Miscellaneous accounts payable------. . . . . . . . . . . . . . . . . . . . . . . . . . . .
762. Interest matured unpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . -----------
763. Dividends matured unpaid. . .
764. Funded debt matured unpaid
765. Unmatured dividends declared.................................
766. Unmatured interest accrued ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
767. Unmatured rents accrued ....
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
768. Other current liabilities------. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
769. Liability for provident funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
770. Other deferred liabilities. . . . . .
771. Tax liability -----------------.
772. Premium on funded debt... --
* * * * * * * * * * * * * * * * * * * * * * * * * * * s sº e g is sº sº as
* * * * * * * * > * * * * * * * * * * * * * sº tº dº º ºs ºs º ºs º ºs º ºs
773. Insurance and casualty reserves---------. . . . . . . . . . . . . . . . . . . . . . . . .
774. Operating reserves.---------------------------------------------
775. Accrued depreciation—Road.
776. Accrued depreciation—Equipment - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
777. Accrued depreciation—Miscellaneous physical property . . . . . . . . . .
778. Other unadjusted credits......
779. Additions to property through
income and surplus-----. . . . . . . . . . .
780. Funded debt retired through income and surplus. . . . . . . . . . . . . . . . .
781. Sinking fund reserves-------------------------------------------
782. Miscellaneous fund reserves. . .
e ºs e s g g º nº & e º sº ºn tº as gº ºn e º sº se s as º ºs s nº sº sº º e s ∈ ºn
783. Appropriated surplus not specifically invested.-------------. . . . . . .
784. Profit and loss—Balance. . . . . .
tº ºs º gº tº gº º ºs º gº º ºs ºs e º ºs ºr sº & º ºs ºs tº gº º we tº sº tº º is tº s is
BALANCE-SEHEET STATEMENT.
Form of general balance-sheet statement
58
SPECIAL INSTRUCTIONS.
1. BALANCE-SHEET ACCOUNTS.-Balance-sheet accounts are those showing the
assets, liabilities, and corporate surplus or deficit of the business.
2. DISCOUNT AND PREMIUM ON CAPITAL STOCK.—Ledger accounts shall be provided
to cover the discounts and premiums at the sale or resale of each subclass of capital
stock issued or assumed by the company. The total of the net debit balances remain-
ing in these several accounts shall be included in account No. 724, “Discount on
capital stock,” and the total of the net credit balances in account No. 753, “Premium
on capital Stock.” For explanation of subclass see account No. 751, “Capital
Stock.” -
By the term discount is meant the excess of the par value of stocks actually
issued or assumed over the actual money value of the consideration received for
such stocks. By the term premium is meant the excess of the actual money
value of the consideration received for stock actually issued or assumed over
the par value Of Such Stock.
The term premium is not intended to include amounts received representing
expected dividends COnsidered to have accrued since the last dividend period in
case of Stocks on which dividends are regularly paid, nor is discount, as above
defined, intended to be diminished by any such amount representing expected
dividends explicitly stated in the price at which the stock is issued.
Entries in these accounts representing discounts shall be carried therein until offset
(1) by premiums realized on subsequent sales of the same subclass of stock, (2) by
assessments levied on the stockholders, (3) by appropriations of income or surplus for
that purpose, or (4) by charges to Profit and LOSS upon reacquirement of the stock.
Entries in these accounts representing premiums realized shall be carried therein
until offset (1) by discounts suffered on sales of the same subclass of St0Ck, Ojº
(2) by credits to Profit and Loss upon reacquirement of the stock.
In case the accounting COmpany is permitted and elects to distribute all or
any part of the net premium On its capital stock to its stockholders, the amount
thus distributed Shall be charged to the premium account.
I'Or the purpose Of this classification the premium realized at the Sale of
capital stock shall not be considered a profit and loss item, except upon the
reacquirement of the stock sold. .
In no case shall discount on capital stock be charged to or included in any account
as a part of the cost of acquiring any property, tangible or intangible, or as a part of
the cost of operation.
When stock which has been issued or assumed by the accounting company is
reacquired, the difference between the price paid and the par value of the stock
shall be credited to profit and loss account No. 607, “Miscellaneous credits,”
or charged to account No. 621, “Miscellaneous debits,” as may be appropriate.
Concurrently the premium or discount account for the particular issue of Stock
reacquired shall be adjusted through Profit and Loss to the extent of the
premium Or discount applicable to the shares reacquired. In Case the premium
realized or discount suffered at the prior sale of the stock reacquired has been
included in an asset aceount other than the premiums and discounts account,
39
40 GENERAL BALANCE SHEET.
such asset account shall be concurrently adjusted through Profit and LOSS to
the extent of the premium or discount previously included therein with respect
to the shares reacquired.
3. DISCOUNT, ExPENSE, AND PREMIUM on FUNDED DEBT.—Ledger accounts shall
be provided to cover the discounts, expense, and premiums at the Sale or resale of each
subclass of funded debt and of receiver's certificates issued for the benefit of or
assumed by the company. For explanation of subclass see account No. 755,
“Funded debt unmatured.” .
By the term discount is meant the excess of the par value of funded debt securities
(of whatever kind) issued or assumed, and the accrued interest thereon, over the actual
cash value of the consideration received for such securities. -
by the term premium is meant the excess of the actual cash value of the consideration
received for funded debt securities (Of whatever kind) issued or assumed over
the par value of such securities and the accrued interest thereon.
By the term ea pense is meant all expense in connection with the issue and
Sale of evidences of debt, such as fees for drafting mortgages and trust deeds; fees and
taxes for issuing or recording mortgages and trust deeds; cost of engraving and printing
bonds, certificates of indebtedness, and other negotiable paper having a life of
more than One year; fees paid trustees provided for in mortgages and trust
deeds; fees paid for legal services to trustees relative to mortgage securities;
fees and commissions paid underwriters and brokers for marketing such evi-
dences of debt; and other like expense. +
The total of the net debit balances remaining in these several accounts should be
included in account No. 725, “Discount on funded debt,” and the total of the net
credit balances in account No. 772, “Premium on funded debt.” *
Each fiscal period there shall be charged to income account No. 548, “Amorti-
zation of discount on funded debt,” a proportion (based upon the ratio of Such
fiscal period to the remaining life of the respective securities reckoned from the
beginning of the period to the date of maturity of the debt to which the charges.
relate) of each of the debit balances in these accounts, and correspondingly there
shall be credited to income account No. 517, “Release of premiums on funded
debt,” a similar proportion of each of the credit balances in these accountS.
Carriers are allowed the option of extinguishing at any time, through charges to
Profit and Loss, all or any portion of the debit balances remaining in any of
these accounts and of deferring the extinguishment of credit balances until the
maturity of the obligations represented. - . . .
When any funded debt which has been actually issued to bona fide holders for
value is reacquired by the accounting company, that proportion of the balance
remaining in the accounts containing discount, expense, and premium on funded
debt for the subclass of the security reacquired applicable to the portion re-
acquired shall be credited or charged thereto, as may be appropriate, and
concurrently charged or credited to Profit and Loss. Such proportion shall be
based upon the ratio of the par value of the security reacquired to the par
value of all the securities of the subclass actually outstanding immediately
before Such reacquirement. - -
In case, however, the premium realized or discount suffered at the prior sale
of the Securities reacquired has been included (in excess Of the amount author-
ized in the text of road and equipment account No. 76, “Interest during con-
struction”) in an asset account other than the premiums and discounts account,
such asset account shall be concurrently adjusted through Profit and Loss to
the extent of such excess of the premium or discount previously included therein
With respect to the Securities reacquired. - . r . -
Except as provided for in road and equipment account No. 76, “Interest during
construction,” no discount and expense on funded debt shäll be charged to or included
GENERAL BALANCE SHEET. - 41
in any account as a part of the cost of acquiring any property, tangible or intangible,
or as a part of the cost of operation.
4. CONTINGENT ASSETS AND LIABILITIES.–Contingent assets and liabilities shall
not be included in the body of the balance-sheet statement, but shall be shown in
detail in a Supplementary statement accompanying the balance-sheet statement.
Contingent assets are those without value to the accounting company until the fulfill-
ment of conditions regarded as uncertain. Contingent liabilities include items which
may, under certain conditions, become obligations of the company, but are neither
direct nor assumed obligations on the date of the balance sheet.
5. BOOK VALUE OF SECURITIES OWNED.—The accounting company is allowed
the Option . Of Carrying its investments in Securities Other than those issued or
assumed by it either at cost Or at a reasonable valuation other than cost. In
recognition of this option the term ledger value is used in the text of the
aCCounts representing Securities Owned. . - -
6. INCOME FROM SINKING FUND AssETs.-Accrued interest on uninvested sink-
ing fund cash on deposit in banks Or trust COImpanies, and accrued interest and
other income arising from stocks, bonds, or other assets held in sinking and
reserve funds shall be credited to account No. 516, “Income from sinking and
other reserve funds,” and when required by the mortgage or other provision to
be held in the funds shall be charged, according to the character of the funds,
to account No. 703, “Sinking funds,” or to account No. 721, “Insurance and
other funds,” and concurrently, if a reserve is required, an equal amount shall
be charged to income account No. 552, “Income applied to sinking and other
reserve funds” and credited to account No. 773, “Insurance and casualty re-
serves,” No. 781, “Sinking fund reserves,” or No. 782, “Miscellaneous fund
reserves,” as the Case may require. - -
7. CURRENT ASSETS.–In the group of a CCOunts designated as Current assets
(accounts No. 708 to No. 719, inclusive) there shall not be included any item
the ledger value of which is not reasonably assured by the known financial
Condition of the debtor. The amount of any item Of a Current character but
of doubtful value shall be included in account No. 722, “Other deferred assets,”
or written off through Profit and Loss, as may be appropriate. If desirable to
I’etain a record of the item in the balance sheet, it may be Stated at a nominal
value in account No. 722, “Other deferred assets,” the difference between the
full amount of the item and Such nominal Value being charged to Profit and
LOSS.
8. JoſNT LIABILITIES.—The accounting company shall State as a liability in its
balance sheet the total par value of securities jointly issued by it and Others,
and it shall include in account No. 722, “Other deferred assets,” the portion of
such liability which, under the joint arrangement, it is expected will be liqui-
dated by the other party or parties to the joint arrangement.
TEXT PERTAINING TO GENERAL BALANCE SHEET ACCOUNTS.
DEBITS,
701.
702.
INVESTMENT IN ROAD AND EQUIPMENT. -
This account Shall include the accounting company's investment in road
and equipment (including that held under contract for purchase) in ex-
istence at the date of the balance sheet. The accounting company’s records
shall be kept in Such manner as to show the amount Credited to this account
subsequent to June 30, 1914, for property retired, the cost of which was
included in the acCOunt Of that date. -
NoTE A.—This account shall not include any items representing titles to securities.
NOTE B.—When any equipment is acquired under an agreement which provides that the cost shall
be paidin installments,thecost (its money value attime of purchase)shallbecharged to theappropriate
road and equipment accounts at the time of its acquisition, and included in this account in the same
manner as the cost of equipment purchased outright. When the par value of notes or othersecurities
issued in payment, or in part payment, for such equipment is more (or less) than the actualcash value
of the equipment at the time of the purchase, or of the proportion to which the securities are applicable,
the difference between the par value of the securities and the actualcash value of the equipment, or of
the proportion paid for by the Securities, shall be charged (or credited) to the proper discount and pre-
mium accounts.
IMPROVEMENTS ON LEASED RAILWAY PROPERTY.
This account shall include the accounting company’s investment in addi-
tions and betterments made by it to railway property held under long-term
lease or through control of the Corporation owning the property and in
existence at the date Of the balance Sheet. The accounting Company’s rec-
ords shall be kept in Such manner as to show the amount Credited to this
account subsequent to June 30, 1914, for property retired, the cost of which
was included in the acCOunt at that date. The amounts included in this
account shall be classified in the accounts provided in the classification for
investment in road and equipment.
NoTE.—This account shall not include any iterns representing titles to securities.
. SINRING FUNDS.
This account Shall include the amount Of Cash, the ledger value of live
securities of other companies, and other assets which are held by trustees
of sinking and other funds for the purpose of redeeming Outstanding obli-
gations, including such assets So held in the hands of the accounting com-
pany’s treasurer when the assets are segregated in a distinct fund; also
amounts deposited with such trustees on account of mortgaged property sold
the proceeds of which are to be held for the redemption of Securities, and
the par value of live Securities issued or assumed by the accounting com-
pany and held in Such funds. A Separate account shall be kept for each
fund. The title of each such account shall designate the obligation in Sup-
port of which the fund is created.
NOTE.-In stating the balance sheet in the annual reports to the Commission the total amount of
the funds and the par value of Securities issued or assumed by the accounting company and held in the
funds shall be shown in the short columns, and the net amount of the funds (total amountless securities
issued or assumed) shall be shown in the long column. -
43
44
GENERAL BALANCE STHEET.
704. IDEPOSITS IN LIEU OF MORTGA GED PROPERTY SOLD.
This account shall include funds deposited with trustees, to be held
until mortgaged property Sold is replaced.
NOTE.-In Stating the balance sheet in the annual reports to the Commission the
total amount of the funds and the par value of securities issued or assumed by the
accounting company and held in the funds shall be shown in the short columns, and
the net amount of the funds, (total amount less securities issued or assumed) shall
be shown in the long Column.
. MISCELLANEOUS PHYSICAL PROPERTY.
This account shall include the accounting company’s investments in
physical property other than transportation property assignable to accounts
Nos. 701 and 702, including hotels, restaurants, commercial power plants,
etc., which are entirely distinct from transportation property and are not
Operated in Connection with the transportation service of the accounting
COmpany. -
ITEMIS OF INVESTMENT.
Coal and other mines. Mineral and timber 1ands.
Commercial power plants. Rails and other track material leased
Hotels and restaurantS. to others.
Ilands and buildings not used in trans- Sawmills and other manufacturing
portation Operations. plants not operated in connection
Lands and other property acquired and With transportation service.
held in anticipation of future use.
INVESTMENTS IN AFFILIATED COMPANIES.
This account shall include the ledger value of the accounting company's
investment advances to affiliated Companies, also of its investment in Secu-
rities issued or assumed by such companies, such securities not being held
in Special deposits or in special funds.
This account shall be subdivided:
(a) Stocks.
(b) Bonds.
(c) Notes, including herein not only notes that run longer than one
year and all notes of affiliated companies held as investments, but also
notes payable on demand or within one year from the date of issue
When it is mutually understood and intended that the notes shall not be
enforced as current assets. -
(d) Advances.
The accounting Company’s record shall be kept in such manner that the
ledger value of securities pledged as collateral security for any of the ac-
counting Company’s funded debt or short-term loans and the Tedger value
of Securities unpledged may be shown separately in the annual report to
the Commission. -
706.
NOTE. A.—Accounts with affiliated companies which are subject to current settle-
ments, Such as traffic and car-Service balances, charges for material and supplies
currently furnished, charges for repairs to equipment, etc., shall be classed as cur-
rent assets or current liabilities, as may be appropriate.
NOTE. B.-The term affiliated companies includes:
1. Controlled companies, including companies solely controlled by the accounting
company, and also companies jointly controlled by the accounting company and
others under a joint arrangement. *
2. Controlling Companies, including both companies solely controlling the account-
ing company, and companies which jointly control the accounting company under a
joint arrangement. - -
3. Companies controlled by controlled companies.
4. Companies controlled by controlling companies.
By control is meant the ability to determine the action of a corporation. For the
purposes of this account, the following are to be considered forms of control :
GENERAL BALANCE, SHEET. 45
(a) Right through title to securities issued or assumed to exercise the major part
of the voting power in the controlled corporation. -
(b) Right through agreement of some character or through some source other
than title to securities, to name the majority of the board of directors, managers, or
trustees of the controlled corporation. -
(c) Right to foreclose a first lien upon all or a major part in value of the tangible
property of the controlled corporation.
(d) Right to secure control in consequence of advances made for construction of
the operating property of the controlled corporation.
(e) Right to control only in a specific respect the action of the controlled corpo-
Tation.
A leasehold interest in the property of a corporation is not to be classed as a
form of control over the lessor corporation. , “ .
Sole control is that which rests in One Corporation. -
Joint control is that which rests in two or more corporations and Which is held
Runder a joint arrangement. -
NOTE C.—The value of securities borrowed by the accounting company and pledged
Shall not be included in this account.
NOTE D.—The value of securities pledged for purposes other than that of security
for funded debt or Short-term loans shall be included in account No. 703, “Sinking
funds,” No. 704, “Deposits in lieu of mortgaged property sold,” No. 711, “Special
deposits,” or No. 721, “Insurance and other funds,” as may be appropriate. .
ºł)7. OTHER INVESTMENTS. - -
This account shall include the ledger value of the accounting company’s
investment advances to nonaffiliated companies and to individuals, and Of its
investment in securities issued or assumed by such companies, such securi-
ties not being held in special deposits or in special funds; also miscellaneous
investments not provided for elsewhere. -
This account Shall be Subdivided :
(a) Stocks.
(b) Bonds.
(c) Notes, including herein not only notes that run longer than one
year and all notes Of nonaffiliated companies and of individuals held as
investments, but also notes payable on demand or within one year from
date of issue when it is mutually understood and intended that the notes
shall not be enforced as Current assets.
(d) Advances.
(e) Miscellaneous.
The accounting company's records shall be kept in such manner that the
ledger value of securities pledged as collateral Security for any of the ac-
counting Company’s funded debt or short-term loans and the ledger value
of securities unpledged may be shown separately in the annual report to
the COImmission.
NoTE A.—Accounts with nonaſfiliated companies which are subject to current settlements, such as
traffic and car-Service balances, charges for materials and supplies currently furnished, charges for
repairs to equipment, etc., shall be classed as current assets or current liabilities, as may be appropriate.
NoTE B.—The term monaſfiliated companies includes all companies other than those defined as
affiliated in Note B of account No. 706, “Investments in affiliated companies.”
NoTE C.—The value of securities borrowed by the accounting company and pledged shall not be
included in this account. - -
NOTE D.—The value of securities pledged for purposes other than that of security for funded debt
or short-term loans shall be included in account No. 703, “Sinking funds,” No. 704, “Deposits in
lieu of mortgaged property sold,” No. 711, “Special deposits,” or No. 721, “Insurance and other
funds,” as may be appropriate.
Tſ)3. CASH. -
This account shall include money, checks, sight drafts, and sight bills of
eXchange in the hands of the accounting company’s financial officers and
agents, Or in transit from its agents and conductors for which such agents
and conductors have received credit. It shall also include deposits with
banks and trust companies subject to check. (See special instructions,
section 7.) *
46
GENERAL BALANCE SHIEET.
709. DEMAND LOANS AND DEPOSITS.
710.
711.
712.
7I
714.
3.
5
This account shall include the amount of demand loans fully secured by
Stocks, bonds, and other marketable collateral, and of deposits with banks
and trust companies when such items are subject to collection on demand.
(See special instructions, section 7.)
TIME DRAFTS AND DEPOSITS.
This a CCOunt Shall include the amount of time drafts receivable and time
deposits with banks and trust companies. (See special instructions, sec-
tion 7.)
SPECIAL DEPOSITS.
This account shall include funds specially deposited (other than in sink-
ing funds) for the payment of dividends, interest, and other debts; also
money and Securities deposited to insure the performance of contracts to
be performed within One year from the date Of the balance sheet ; and
other deposits of a special nature not provided for elsewhere. (See special
instructions, section 7.) -
NOTE A.—Securities pledged as collateral for the accounting company’s funded debt or short-term
loans shall be included inaccordance with the character of the securities pledged in accounts Nos. 706,
707 or 729. -
NOTE B.—In stating the balance sheet in the annual reports to the Commission the total amount of
the funds and the par value of securities issued or assumed by the accounting company and held in
the funds shall be shown in the short Columns, and the net amount of the funds (total amount less
securities issued or assumed) shall be shown in the long column.
I,OANS AND BILLS RECEIVABLE.
This account shall include the book value of all collectible obligations in
the form of demand or time loans and bills receivable, or other similar evi-
dences (except interest coupons) of money receivable within a time not exceed-
ing one year from date of issue. (See special instructions, section 7.)
NOTE A.—This account does not include obligations which mature more than one year after date.
of issue, or demand or Short-term notes held as investments includible in accounts Nos. 706 and
*707. -
NOTE B.—Demand loans fully secured by stocks, bonds, or other marketable collateral shall be
included in account No. 709, “Demand loans and deposits.”
TRAFFIC AND CAR-SERVICE BALANCES RECEIVABLE.
This account shall include the net amount receivable from other companies,
against each of which there is a net debit balance in the total of the accounts
representing interline freight, passenger, and baggage revenues, and charges for
equipment interchanged on a per diem or a mileage basis. (See special instruc-
tions, section 7.)
NOTE.—The amount to be entered in this account is not the net balance between this account and
account No. 759, “Traffic and car-service balances payable.” *
NET BALANCE RECEIVABLE FROM AGENTS AND CONDUCTORS.
This account shall include the net balance due in current accounts from agents,
from train, sleeping car, and dining car conductors, and from train collectors,
train auditors, porters, and other employees and representatives charged with
the collection or custody of current revenues. (Seespecial instructions, section 7.)
NOTE.—Amounts advanced to general and special agents as working funds shall not be included
in this account, but in account No. 720, “Working fund advances.”
. MISCELLANEOUS ACCOUNTS RECEIVABLE,
This account shall include amounts due in audited accounts considered good,
such as those due from the United States or other Governments for the transporta-
tion of mails and Government property, and from express companies for express
facilities furnished under contract; amounts due from other carriers on account
716.
717.
GENERAL BALANCE SEIEET. 47
of freight claims paid; miscellaneous bills against other railway companies, cor-
porations, firms, and individuals, and other similar items. (See special instruc-
tions, Section 7.)
NOTE.-The amount to be entered in this account is not the net balance between this account and
account No. 761, “Miscellaneous accounts payable.” -
MATERIAL AND SUPPLIES.
This account shall include the balances representing the cost, less depreciation,
if any, of all unapplied material, such as road and shop material, articles in proc-
ess of manufacture by the accounting company, fuel, stationery, and dining
Car and Other Supplies. In determining the COSt Of material and Supplies
suitable allowance shall be made for any discounts allowed in the purchase
thereof.
NOTE.-Balances representing the cost of unapplied construction material and
supplies located at the point of use, which have been purchased for projected new
roads and extensions, are provided for in road and equipment account No. 47, “ Un-
applied construction material and Supplies.”
INTEREST AND DIVIDENDS RECEIVABLE.
This a CCOUnt Shall include the amount Of interest accrued to the date Of
the balance sheet On bonds Owned and On loans made, the amount Of divi-
dends declared on stocks owned, and dividends accrued on such stocks when
contracts require that the dividends be paid at Stated times. (See Special
instructions, section 7.)
NOTE. A.—No amount representing interest or dividends receivable shall be
included in this account unless its payment is reasonably assured by past experi-
ence, anticipated provision, or otherwise.
NOTE B.-No dividends or other returns on securities issued or assumed by the
accounting company shall be included in this account. -
718. RENTS RECEIVABLE.
719.
720.
This a CCOunt Shall include rentS receivable accrued to the date Of the
balance sheet under leases and not includible in account No. 715, “Miscel-
laneous accounts receivable.” It is not required that minor rents shall be
accounted for upon an accrual basis. (See special instructions, section 7.)
OTHER, CURRENT ASSETS.
This account shall include items of current assets not covered by accounts
NOS. 708 to 718 inclusive. -
It shall include asset items that have not yet reached the stage of audited
accounts and become classable in account No. 715, and yet have been
advanced beyond the Stage of accounts properly classable in account No. 722.
(See special instructions, section 7.)
WORKING FUND ADVANCES.
This account Shall include amounts advanced to general and Special
agents, and to other officers and employees, as working funds from which
Certain expenditures are to be made and accounted, for. It also includes ad-
vances to fast freight lines and to demurrage and Other bureau.S.
721. INSURANCE AND OTHER, FUNDS.
This account shall include the amount of cash and the ledger value of securi-
ties of other companies and other assets which are in the hands of trustees or
managers of insurance, employees' pension, Savings, relief, hospital, and other
funds which have been raised and specifically set aside or invested for specific
purposes not provided for elsewhere; also the par value of securities issued or
assumed by the accounting company and held in Such funds. A separate account
shall be kept for each fund.
48 GENERAL BALANCE SHEET.
NoTE A.—Sinking funds and special deposits for the retirement of obligations are provided for in
accounts No. 703 and No. 711, respectively. -
NOTE B.—In stating the balance sheet in the annual reports to the Commission the total amount
of the funds and the par value of securities issued or assumed by the accounting company and held
in the funds shall be shown in the short columns, and the net amount of the funds (total amount less
securities issued or assumed) shall be shown in the long column. - -
NOTE C.—This account shall not include funds held by the accounting company solely as trustee
and in which it has no beneficial interest.
722. OTEIER, DEFERRED ASSETS.
This account shall include items of deferred assets not covered by accounts
No. 720 and No. 721.
723. RENTS AND INSURANCE PREMIUMS PAID IN ADVANCE.
This account shall include the balances in the accounts representing prepaid
rents chargeable to the appropriate rent accounts under Income as the term is
consumed for which the rents are paid; also insurance premiums paid in advance
of their accrual, which premiums are to be apportioned and charged, as they
accrue, to appropriate accounts.
724. DISCOUNT ON CAPITAT, STOCK.
This account shall include the total of the net debit balances in the discount
and premium accounts for the Several subclasses of Capital stock. (See special
instructions, Section 2.) -
725. DISCOUNT ON FUNT).ED DEBT.
This account shall include the total of the net debit balances in the discount,
expense, and premium accounts for the several subclasses of funded debt. (See
special instructions, Section 3.)
726. PROPERTY ABANDONED CHARGEABLE TO OPERATING EX-
TENSES. -
This account is intended as a suspense account, in which may be in-
cluded amounts chargeable to Operating Expenses for fixed improvements
abandoned directly in connection with improvement or betterment work
which are relatively large and the inclusion of which in the carrier's
accounts for a single year would seriously distort the accounts. It is to be
used only after permission of the Interstate Commerce Commission has been
asked and given. The carrier, in its application to the Commission, shall
give full particulars concerning the property retired, the amount chargeable
to Operating Expenses, and the period over which, in its judgment, the
amount Of Such charge should be distributed.
For each item remaining at the close of the year in this account the
accounting carrier shall indicate in its annual report to the Commission,
with respect to each item of property abandoned, the period over Which it
is proposed to distribute the balance relating to the item, the date of the
abandonment of the property, and the total amount Originally to be
Charged to Operating Expenses.
727. OTHER UNADJUSTED DEBITS.
This account shall include the amount of debit balances in suspense ac-
counts that can not be entirely cleared and disposed of until additional
information is received, such as freight claims paid when found to be COr-
rect, but in advance of investigation with other carriers; interest paid in
advance; debit balances in clearing accounts, Such as “Shop expenses,”
“Store expenses,” “Operations of gravel pits,” and “Operations of quar-
ries”; items credited to Operating Revenues or Operating Expenses on an
estimated basis in accordance with general instructions for the classifica-
tion of operating revenues and operating expenses, Section 2; unextin-
GENERAL BALANCE SHEET. 49
guished discount on short-term notes; estimated accrued depreciation on
equipment leased (see general instructions, section 2); unadjusted debit
items not provided for in accounts NOS. 724, 725, and 726, and other similar
items. . . . -- - - . . . .
728. SECURITIES ISSUED OR ASSUMED–UNPLEDGED.
This account shall include the par value of securities issued by the ac-
counting company and the par value of Securities issued by other companies
and assumed by the accounting company, that are held unpledged in the
company’s treasury or by its agents or trustees, except trustees of sinking
- ê º ©
Or Other Similar funds.
This account shall be divided into (a) Stocks, and (b) Bonds and other
evidences of funded debt, each of which divisions shall be further so sub-
divided that in the company’s annual report to the Commission may be
shown (1) amount nominally but not actually issued, and (2) amount
nominally OutStanding.
INOTE A.—The term securities, as used in this account, includes all authorized certificates of stock
and evidences of indebtedness which have been signed, sealed, and, when required, certified by the
registrar or by the trustees under the mortgage or contract, and are not short-term securities. By
short-term securities are meant those which are payable on demand or which mature not more than
one year from date of issue. (See also Notes B to accounts Nos. 751 and 755.)
NOTE B.—This account shall not include securities that are merely guaranteed.
NOTE C.—This account shall not include any securities held in sinking and other reserve funds.
NOTE D.—In the general balance-sheet statement the balance in this account shall be stated in
the short column only. -
NOTE. E.--When any securities have been actually issued to bona fide holders for value, or after
issue by another company have been assumed by the accounting company, and after such issue
or assumption are reacquired under circumstances which require that they shall not be treated as
canceled or retired, they shall be included in this account at par value; the difference between the
par value and the amount paid in reacquiring such securities shall be debited (or credited, as the
case may be) to Profit and Loss. If such securities are subsequently pledged, they shall be included
in account No. 729, “Securities issued or assumed—Pledged.” (See special instructions, sections 2
and 3.)
729. SECURITIES ISSUED OR ASSUMED–PLEDGED. -
This account shall include the par value of that portion of securities
pledged by the accounting company as collateral security for any of its
funded debt or short-term loans, which consists of securities issued by the
accounting Company and Securities issued by other companies, the obligation
for payment of which has been assumed by the accounting company. This
account shall be subdivided into (a) Stocks, and (b) Bonds and other evi-
dences of funded debt, each of which divisions shall be further so divided
that in the company's annual report to the Commission may be shown (1)
the amount nominally but not actually issued, and (2) the amount
nominally Outstanding. -
NOTE: A.—The term Securities as used in this account includes all authorized certificates of stock
and evidences of indebtedness which have been signed, sealed, and, when required, certified by
the registrar or by the trustees under the mortgage or contract, and are not short-term securities.
By short-term securities are meant those which are payable on demand or which mature not more
than one year from date of issue. (See also Notes B to accounts Nos. 751 and 755.)
NOTE B.—This account shall not, include securities that are merely guaranteed.
NOTE C.—This account shall not include securities which have been borrowed by the accounting
Company and pledged, nor any securities held in sinking and other reserve funds.
NOTE D.—In the general balance-sheet statement the balance in this account shall be stated
in the short column only. -
NOTE E.—The par value of securities issued or assumed and pledged for purposes other than
that of Security for funded debt or short-term loans shall be shown in account No. 703, “Sinking
funds”; No. 704, “Deposits in lieu of mortgaged property sold,” No. 711, “Special deposits”; or
No. 721, “Insurance and other funds,” as may be appropriate.
NOTE: F.—When any securities have been actually issued to bona fide holders for value, or after
issue by another company have been assumed by the accounting company, and after such issue
50
GENERAL BALANCE SHEET.
or assumption are reacquired under circumstances which require that they shall not be treated as
canceled or retired, they shall be included in account No. 728, “Securities issued or assumed—Un-
pledged,” at par value; the difference between the par value and the amount paid in reacquiring
such securities shall be debited (or credited, as the case may be) to Profit and Loss. If such securi-
ties are subsequently pledged, they shall be included in this account. (See special instructions, sec-
tions 2 and 3.)
CREDITS.
751. CAPITAL STOCK. 3.
2.
This account shall include the total par value of certificates or receipts issued
to represent permanent interests in the accounting comfpany, or interests which,
if terminable, are so only at the option of the company. -
The amounts included in this account shall be divided so as to show the par
value of (1) certificates (pledged or unpledged) held in the company’s treasury,
by its agents or trustees, or otherwise subject to its control, including both those
reacquired after actual issue and those nominally but never actually issued;
and (2) certificates issued and actually outstanding, being those not held by the
company, its agents or trustees, or subject to its control.
The amounts included herein shall be further divided so as to show the amount
of each class of stock issued, as follows:
(a) COMMON STOCK.—Stocks which have no preference in distribution of
dividends.
(b) PREFERRED STOCK.—Stocks having preference in distribution of dividends.
(c) DEBENTURE STOCK.—Stocks issued under a contract to pay a specified
return at specified intervals.
(d) RECEIPTS OUTSTANDING FOR INSTALLMENTS PAID.——Receipts for payments
on account of subscriptions to capital stock. When certificates are issued for
amounts so paid, the par value shall be included in the account covering the
class of stock for which the certificates are issued. .
Each of the above classes shall also be divided into subclasses according to
differences in dividend or interest rights, voting rights, or conditions under which
the securities may be retired.
NOTE. A.—When a general levy or assessment is made against the holders of capi-
tal stock, requiring the payment of any sum for the use of the company in addition
to the consideration agreed upon at the time of sale, the amount collected upon such
levy or assessment shall be credited to the discount and premium account for the
subclass of stock on which the assessment is made. . .
NOTE B.—For the purposes of the balance-sheet statement capital stock is con-
sidered to be nominally issued when certificates are signed and sealed and placed
with the proper officer for sale. and delivery, or pledged, or otherwise placed in some
special fund of the accounting company. It is considered to be actually issued
when it has been sold to a bona fide purchaser for a valuable consideration, and
such purchaser holds it free from all control by the accounting company. All
capital stock actually issued and not reacquired and held by or for the accounting
company is considered to be actually outstanding. If reacquired by or for the
accounting company under such circumstances as require it to be considered as
held alive and not canceled or retired, it is considered to be nominally outstanding.
NOTE C.—In the general balance-sheet Statement the total capital stock included in
the account Shall be shown in the first Short column. The amount nominally but not
actually issued and the amount nominally outstanding shall be shown in the second
short column, and in the long column shall be shown the amount actually outstanding.
STOCK LIABILITY FOR, CONVERSION. -
This account shall include the company’s liability under agreements to
exchange its capital stock for the outstanding securities of companies whose
physical property has been acquired under such agreements, but whose securi-
ties have not yet been surrendered for exchange. -
GENERAL BALANCE SHEET. - 51
753. PREMIUM ON CAPITAT, STOCK.
. This account shall include the total of the net credit balances in the discount
and premium accounts for the several subclasses of capital stock. (See special
instructions, section 2.)
754. GRANTS IN AID OF CONSTRUCTION. -
This account shall include the estimated money value at time of acquisition
of land and other grants received from States, municipalities, and other public
corporations as their contributions toward the construction or acquisition of
property the cost of which is chargeable to investment in road and equipment.
755. FUNDED DEBT UNMATURED.
There shall be included in this account the total par value of unmatured debt,
maturing more than one year from date of issue, issued by the accounting company
and not retired or canceled, and the total par value of similar unmatured debt of
other companies, the payment of which has been assumed by the accounting
company. -
The amounts included in this account shall be divided so as to show the par
value of (1) certificates or other evidences of funded debt (pledged and unpledged)
held in the company’s treasury, by its agents or trustees, or otherwise Subject to
its control, including both those reacquired after actual issue and those nominally
but never actually issued; and (2) certificates or other evidences of funded debt
issued and actually outstanding, being those not held by the company, its agents
or trustees, or subject to its control. - -
The amounts included herein shall be further divided so as to show the
amount of each class of funded debt, as follows: -
(a) EQUIPMENT OBLIGATIONS.—Equipment bonds, equipment notes, or car-
trust notes Secured only by lien on specific equipment.
(b) MoRTGAGE BONDs.-Bonds secured by lien on physical property and not
includible in the other subdivisions of this account. -
(c) CollATERAL TRUST BONDs.-Bonds and notes secured by a lien on Securi-
ties or other negotiable paper; and stock trust certificates that are similar in
character to collateral trust bonds.
(d) INCOME BONDs.-Bonds which are a lien on a carrier's revenue alone, or
bonds which, while being a lien on its property and franchises, can claim pay-
ment of interest only in case interest is earned. .
(e) MISCELLANEOUs obLIGATIONs.—All funded obligations not provided for
by the other subdivisions of this account, also notes, unsecured certificates of
indebtedness, debenture bonds, plain bonds, real estate mortgages executed or
assumed, and other similar obligations maturing more than one year after date
of issue.
(f) RECEIPTs ouTSTANDING FOR FUNDED DEBT.—Receipts for payments on
account of funded debt. When certificates are issued for amóunts So paid, the
par value shall be included in the account covering the class of funded debt for
which the certificates are issued. -
Each of the above classes shall also be divided into subclasses according to
differences in mortgage or other lien or security therefor, rate of interest, interest
dates, or date of maturity. Parts of any issue agreeing in other characteristics
but maturing serially may be treated as of the same subclass.
NoTE. A.—Securities maturing one year or less from date of issue shall be in-
cluded in account No. 757, “Nonnegotiable debt to affiliated companies,” or No. 758,
“Loans and bills payable,” except that where an issue of securities maturing Serially
over a period of years contains short-term obligations such obligations may be in-
cluded as funded debt. Matured funded debt shall be included in account No. 764,
“Funded debt matured unpaid.”
52.
GENERAL BALANCE SHEET.
756.
757.
NOTE. B.-For the purposes of the balance-sheet statement funded debt securities
are considered to be nominally issued when certified by trustees and placed with the
proper officer for sale and delivery, or pledged, or otherwise placed in some special
fund of the accounting company. They are considered to be actually £SSwed when
they have been Sold to a bona fide purchaser for a valuable consideration, and such
purchaser holds them free from all control by the accounting company. All funded
debt Securities actually issued and not reacquired and held by or for the accounting
Company are considered to be actually owtstanding. If reacquired by or for the
accounting company under Such circumstances as require them to be considered as
held alive and not canceled or retired, they are considered to be nominally out-
Standing. - - -
NOTE C.—Nonnegotiable notes having a maturity of more than one year after
date of issue, held by affiliated companies, shall be included in account No. 757,
“Nonnegotiable debt to affiliated companies.” - .
NOTE D.—In the general balance-sheet statement the total unmatured funded deb
included in the account shall be shown in the first snort column. The amount nomi-
nally but not actually issued and the amount nominally outstanding shall be shown
in the Second Short Column, and in the long Column shall be shown the amount
actually Outstanding.
RECEIVER'S CERTIEICATES. -
When any receiver acting under the orders of a court is in possession of
the property of the Company and under the Orders of such court issues evi-
dences of indebtedness chargeable upon such property, the par value of
Such evidences shall be Credited to this a CCount.
NONNEGOTIABLE DEBT TO AFFILIATED COMPANIES.
This account shall include the par value of nonnegotiable notes issued
to affiliated companies, credit balances in open accounts with such companies
other than Credit balances in Current accounts classable as current liabili-
ties, and interest accrued on notes and Open accounts included in this
account, when such interest is not subject to current settlements.
This account Shall be divided :
(a) Notes, including herein not only nonnegotiable notes that run longer
than a term of One year, but also such notes payable on demand or within
one year from the date of issue when it is mutually agreed that the notes ,
shall not be enforced as Current assets by the holder.
(b) Open accounts not subject to current settlement. -
(c) Interest accrued on amounts included in this account when not sub-
ject to Current SettlementS.
NOTE. A.—Accounts with affiliated Companies which are subject to current settle-
ments, such as traffic and car-service balances, charges for material and supplies
currently furnished, charges for repairs to equipment, etc., shall be classed as current
assets or current liabilities, as may be appropriate. ©
NOTE. B.-No item shall be included in this account which is not known to be the
property of an affiliated company.
NOTE. C.—The term affiliated companies includes : -
1. Controlled companies, including companies solely controlled by the accounting
company, and also companies jointly controlled by the accounting company and
others under a joint arrangement.
2. Controlling companies, including both companies solely controlling the account-
ing company, and companies which jointly control the accounting company under a
joint arrangement. -
3. Companies controlled by controlled companies.
4. Companies controlled by controlling Companies.
By control is meant the ability to determine the action of a corporation. For the
purposes of this account, the following are to be considered forms of control:
(a) Right through title to securities issued or assumed to exercise the major part
of the voting power in the controlled corporation. -
(b) Right through agreement of some character or through some source other than
title to securities, to name the majority of the board of directors, managers, or
trustees of the controlled Corporation.
(c) Right to foreclose a first lien upon all or a major part in value of the tangible
property of the controlled corporation.
GENERAL BALANCE SEIEET. 53
(d) Right to secure control in consequence of advances made for construction of
the operating property of the controlled corporation. º
(e) Right to control only in a specific respect the action of the controlled cor-
poration.
A leasehold interest in the property of a corporation is not to be classed as a form
of control over the lessor corporation.
Sole control is that which rests in one Corporation.
Joint control is that which rests in two or more corporations and which is held
under a joint arrangement.
758. IOANS AND BILLS PAYABLE. .*
This account shall include the balances representing Obligations Outstand.
ing in the form of loans and bills payable or other similar evidences (except
interest coupons) of indebtedness payable on demand Or within a time not
exceeding One year from date Of issue.
This account shall be kept in such form that the amounts of notes Secured
by collateral, payable within one year from date of issue, may be reported
separately in the corporation’s annual report to the Commission.
NOTE.-This account shall not include obligations which mature more than One
year after date of issue, or demand or short-term notes issued to affiliated com-
panies and includible in account No. 757, “Nonnegotiable debt to affiliated companies.”
‘759. TRAFFIC AND CAR-SERVICE BALANCES PAYABLE.
This account shall include the net amount payable to other companies in
favor of each of which there is a net Credit balance in the total of the
accounts representing interline freight, passenger, and baggage revenues,
and charges for equipment interchanged on a per diem or a mileage basis.
NOTE.--—The amount to be entered in this account is not the balance between this
account and account No. 713, “Traffic and car-service balances receivable.”
760. AUDITED ACCOUNTS AND WAGES PAYABLE.
This account shall include the amount of audited vouchers or accounts and
audited pay rolls unpaid on the date of the balance sheet. It shall include bal-
ances representing unclaimed wages and outstanding pay and time or discharge
checks issued in payment of wages and all other unpaid vouchered items.
761. MISCELLANEOUS ACCOUNTS PAYABLE.
This account shall include Outstanding drafts drawn by station agents,
Outstanding drafts drawn on the Company in Settlement of freight claims,
conductors' refund and extra-fare checks not presented for redemption,
deposits of affiliated companies subject to current settlement, unrefunded
overcharges, and other items of the nature of demand liabilities not covered
by accounts Nos. 758, 759, 760, 762, 763, and 764.
NOTE.-The amount to be reported under this account is not the net balance
between this account and account No. 715, “Miscellaneous accounts receivable.”
762. INTEREST MATURED UNPAID.
This account shall include the amount of matured and unpaid interest on loans
and on funded debt and receiver’s certificates, issued or assumed by the accounting
Company.
Interest which matures on the first day following that for which the balance
sheet is made shall be included in this account.
NOTE.-Interest matured unpaid on nonnegotiable debt to affiliated companies, if not subject
to current settlement, shall be included in account No. 757, “Nonnegotiable debt to affiliated com-
panies.”
763. DIVIDENDS MATURED UNPAID.
This account shall include the amount of dividends payable on capital stock
but unpaid, uncalled for, or unclaimed at the date of the balance sheet.
Dividends which become payable on the first day following that for which the
balance sheet is made shall be included in this account.
54 GENERAL BALANCE SHEET.
764. FUNDED DEBT MATURED UNPAID.
This account shall include the amount of funded debt matured and unpaid
without any specific agreement for extension as to time of payment, including
unpresented bonds drawn for redemption through the operation of sinking and
redemption fund agreements.
765. UNMATURED DIVIDENDS DECLARIED.
This accountshall include dividends declared on capital stock, but not payable
until after the first day following the date of the balance sheet.
766. UNMATURED INTEREST ACCRUED.
This account shall include the amount of interest on loans and on funded debt
and receiver's certificates issued or assumed, accrued to the date for which the
balance sheet is made, but not payable until after the first day following that date.
767. UNMATURED RENTS ACCRUED.
This account shall include rents, under leases or other agreements, accrued to
the date for which the balance sheet is made, but not payable until after the
first day following that date. It shall also include the amount of accrued divi-
dends on stock and accrued interest on the funded debt of other companies when
such dividends and interest are payable by the accounting company as all or a
portion of the rent under leases or other agreements with those companies.
768. OTHER, CURRENT LIABILITIES.
This account shall include items of current liabilities not covered by
accounts No. 758 to No. 767, inclusive.
769. IIABILITY FOR PROVIDENT FUNDS.
This account shall include the ledger balances representing the liability of the
accounting carrier for the amount of the assets (whether contributed by the
company, by the employees, or by others) in the hands of its treasurer or of trustees
or managers acting for it in the administration of employees’ pension, Savings,
relief, hospital, and other association funds.
NOTE A.—This account shall not include items representing funds in which the accounting
company has no beneficial interest and which it holds purely as trustee.
NOTE B.—In stating the balance sheet in the annual reports to the Commission, the liability for
provident funds which are carried in the current cash of the company shall be included under current
liabilities, in account No. 761, “Miscellaneous accounts payable.”
770. OTHER, DEFERRED LIABILITIES.
This account shall include items of deferred liabilities not covered by account
No. 769; such as retained percentages due contractors, to be paid on completion
of contracts; deposits for construction of side tracks, to be refunded on the basis
of an agreed percentage of the earnings from the traffic handled over the tracks;
and other similar items.
. TAX IIIABILITY.
This account Shall include the amount of taxes accrued and charged
against income accounts No. 532, “Railway tax accruals’’; No. 535, “Taxes
On miscellaneous Operating property ‘’’; and No. 544, “Miscellaneous tax
accruals " in exceSS Of the amount paid. .
If the taxes paid are in excess of the taxes accrued, the amount of the
exceSS Shall be shown in red in this a CCOunt.
772. PREMIUM ON FUNDED DEBT.
This account shall include the total of the net credit balances in the discount,
expense, and premium accounts for the Several Subclasses of funded debt. (See
special instructions, section 3.)
7
7
1.
773.
774.
775.
GENERAL BALANCE SIHEET. 55
INSURANCE AND CASUALTY RESERVES.
This account shall include the net credit balance in the accounts to which are
Credited Specific appropriations of income or Surplus and such insurance premi-
ums as are concurrently charged to Operating Expenses to cover self-carried risks
on fire, fidelity, boiler, casualty, burglar, and other insurance, and to which are
charged losses Sustained on items protected by such insurance. -
OPERATING RESERVES.
This account shall include the ledger balances representing reserves created by
charges to Operating Expenses for maintenance of road and equipment, for per-
Sonal injury, loss and damage, and other claims, and for similar purposes, such
charges being made currently for the purpose of equalizing charges to operating
accounts for the current accounting year. (See special instructions for operating
expenses, sections 19 and 20.)
NOTE. A.—Debit balances in operating reserve accounts to be cleared by future charges to operating
accounts shall be shown in red in this account in the carrier's annual report to the Commission.
NOTE B.—The credit balances in reserve accounts representing appropriations of income or surplus
for sinking funds, etc., shall not be included in this account.
NOTE C.—Accrued depreciation crédit balances shall be included in accounts Nos. 775, 776, or 777,
as may be appropriate.
ACCRUED DEPRECIATION-ROAD. -
This account Shall be credited with amounts charged to Operating Ex-
penses or other accounts to cover the depreciation of fixed improvements,
the cost of which is included in account No. 701, “ Investment in road and
equipment,” or in account No. 702, “Improvements on leased railway
property.” -
When any fixed property is destroyed, sold, or otherwise retired from
service, the amount included in this account with respect to the property
776.
777.
778.
retired shall be charged hereto.
(Note carefully general instructions for the classification of investment
in road and equipment, sections 7, 8, 11.)
ACCRUED DEPRECIATION-EQUIPMENT.
This account shall be credited with amounts charged to Operating Ex-
penses or other accounts to cover the depreciation of the accounting com-
pany’s equipment. -
When any equipment is destroyed, sold, or otherwise retired from service,
the amount included in this account with respect to the property retired
shall be charged hereto. (See text of road and equipment general account
II, Equipment.)
ACCRUED DEPRECIATION_MISCELLANEOUS PHYSICAL PROP-
ERTY. -
This a CCOunt Shall be credited with amountS Charged to inCOme Ol' Other
accounts to cover the depreciation of property the cost of which is included
in account No. 705, “Miscellaneous physical property.”
When any miscellaneous physical property is destroyed, sold, or Other-
wise retired from Service, the amount included in this account with respect
to the property retired shall be charged hereto.
OTHER UNADJUSTED CREDITS. -
This account Shall include the amount of Credit balances in SUSpense ac-
counts that can not be entirely cleared and disposed of until additional
information is received, such as amounts realized from the Sale of damaged,
unclaimed, and over freight and held pending claim ; Switching charges of
other carriers collected and held awaiting bills from such carriers; amounts
56
GENERAL BALANCE SHEET.
779.
T80.
781.
782.
received from the sale of mileage tickets, to be disposed of as mileage is
honored by the accounting or other carriers; amounts received from Sales
of excess baggage scrip, to be disposed. Of as Coupons are honored; inter-
changeable mileage credential ticket redemption funds; revenue overcharges
subject to refund; credit balances in clearing accounts such as “Shop ex-
penses,” “Store expenses,” “Operating gravel pits,” and “ Operating quar-
ries”; items charged to Operating Revenues or Operating Expenses On an
estimated basis in accordance with general instructions for the Classifica-
tion of Operating revenues and operating expenses, section 2; estimated
accrued depreciation on leased equipment (see general instructions, Sec-
tion 2); and other similar items. -
ADDITIONS TO PROPERTY THROUGH INCOME AND SURPLUS,
This account shall include Such amounts of income and Surplus as have
been definitely appropriated or set aside, and expended since June 30, 1907,
in the acquisition of property the cost of which is included in property in-
vestment accounts other than those for Securities and also the amount Of
donations in aid of construction made by individuals and companies and
not subject to distribution as dividends. Investments in road and equip-
ment, in improvements on leased railway property, and in miscellaneous
physical property shall be shown separately in the accounting Company’s
records.
This account may also include amounts definitely appropriated or set
aside, and expended prior to June 30, 1907. If such amounts are included,
the account shall be kept in such form as to show Separately amounts ex-
pended to June 30, 1907, and amounts expended Since that date.
NOTE.-Temporary appropriations of current funds for the acquisition of property,
the cost of which is intended later to be met through an issue of Securities, shall not
be included in this account.
FUNDED TOEBT RETIRED THROUGH IN COME AND SURPLUS.
This account shall include the total amount of appropriated income and surplus
expended in the discharge of the principal (less the discount, if any, Suffered at
the time of sale) of any funded debt issued or assumed by the accounting company
and retired through sinking or other funds provided from income or surplus.
The account shall be kept in Such form as to show Separately amounts expended
to June 30, 1907, and amounts expended since that date.
NOTE A.—Témporary appropriations of current funds for the payment of obligations which are
intended to be replaced by new issues shall not be included in this account.
NoTE B.—Amounts of appropriated income and surplus expended in retirement of trust obligations
issued for the purchase of equipment shall be included in account No. 779, “Additions to property
through income and Surplus.”
SINKING FUND RESERVES.
This account shall include the net balances in accounts to which are
credited definite appropriations of income and surplus whether held in general
funds or specifically set aside in the hands of trustees for sinking and redemption
funds. It shall also include income accretions to such funds retained therein.
(See income account No. 552, “Income applied to sinking and other reserve
funds.”)
MISCELLANEOUS FUND RESERVES. - -
This account shall include the net balances in accounts to which are credited
definite appropriations of income and Surplus specifically set aside in the hands
of trustees and not provided for elsewhere. It shall also include income accre-
tions to such funds retained therein. (See income account No. 552, “Income
applied to sinking and other reserve funds.”)
GENERAL BALANCE SEIEET. 57
783. APPROPRIATED SURPLUS NOT SPECIFICATILY INVESTED.
This account shall include the net balances in accounts to which are cred-
ited appropriations of income and Surplus held in general funds for definite
purposes not provided for elsewhere, but for which no specific investment or
Segregation of assets has been made.
784. PROFIT AND LOSS—BALANCE.
This account shall include the balance at the close of the fiscal period as shown
in the accounts provided in the classification of profit and loss accounts.
FORM OF GENERAL BALANCE SHEET STATEMENT.
ExPLANATORY NOTE.-The classified form of general balance-sheet statement
is designed to show the financial condition of the accounting company at any specified
date.
ASSET SIDE.
INVESTMENTS:
701. Investment in road and equipment.
702. Improvements on leased railway property.
703. Sinking funds.
Total book assets at date. (In short column.)
Carrier’s own issues at date. (In short column.)
Other assets at date. (In long column.)
704. Deposits in lieu of mortgaged property sold.
Total book assets at date. (In short column.)
Carrier’s Own issues at date. (In Short column.)
Other assets at date. (In long column.)
705. Miscellaneous physical property.
706. Investments in affiliated companies—
(a) Stocks. •
(b) Bonds.
(c) Notes.
(d) Advances.
707. Other investments—
(a) Stocks.
(b) Bonds.
(c) Notes.
(d) Advances.
(e) Miscellaneous.
Total.
CURRENT ASSETs:
708. Cash.
709. Demand loans and deposits.
710. Time drafts and deposits.
711. Special deposits.
Total book assets at date. (In short column.)
Carrier’s Own issues at date. (In Short column.)
Other assets at date. (In long Column.)
712. Ioans and bills receivable.
713. Traffic and car-service balances receivable.
714. Net balance receivable from agents and conductors.
715. Miscellaneous accounts receivable.
716. Material and supplies.
717. Interest and dividends receivable.
718. Rents receivable.
719. Other current assets.
Total.
GENERAL BALANCE SHEET. 59
DEFERRED AssFTs:
720. Working fund advances.
721. Insurance and other funds.
Total book assets at date. (In short column.)
Carrier’s Own issues at date. (In short column.)
Other assets at date. (In long column.)
722. Other deferred assets.
Total.
UNADJUSTED DEBITs:
723. Rents and insurance premiums paid in advance.
724. Discount on capital stock.
725. Discount on funded debt.
726. Property abandoned chargeable to operating expenses.
727. Other unadjusted debits.
728. Securities issued or assumed—Unpledged. (In short column only.)
729. Securities issued or assumed—Pledged. (In short column only.)
Total.
LIABILITY STD.E.
STOCK:
751. Capital stock—
Book liability at date. (In short column.)
Held by or for carrier at date. (In short column.)
Actually Outstanding at date. (In long Column.)
752. Stock liability for conversion.
753. Premium on capital stock.
Total.
GOVERNMENTAL GRANTs:
754. Grants in aid of construction.
LONG TERM DEBT:
755. Funded debt unmatured—
Book liability at date. (In short column.)
IHeld by or for carrier at date. (In short column.)
Actually Outstanding at date. (I'm long Column.)
756. Receiver’s certificates.
757. Nonnegotiable debt to affiliated companies—
(a) Notes.
(b) Open accounts.
Total.
CURRENT LIABILITIES:
758. Loans and bills payable.
759. Traffic and car-service balances payable.
760. Audited accounts and wages payable.
761. Miscellaneous accounts payable.
762. Interest matured unpaid.
763. Dividends matured unpaid.
764. Funded debt matured unpaid.
765. Unmatured dividends declared.
766. Unmatured interest accrued.
767. Unmatured rents accrued.
768. Other current liabilities.
Total.
DEFERRED LIABILITIES:
769. Liability for provident funds.
770. Other deferred liabilities.
Total.
60
GENERAL BALANCE SEIEET.
UNADJUSTED CREDITS :
CORPORATE
f
771.
772.
773.
774.
775.
776.
777.
778.
779.
780.
781.
782.
783.
784.
Tax liability.
Premium On funded debt.
Insurance and casualty reserves.
Operating reserves.
Accrued depreciation—Road.
Accrued depreciation—Equipment.
Accrued depreciation—Miscellaneous physicial property.
Other unadjusted Credits. - -
Total.
SURPLUS :
Additions to property through income and Surplus.
Funded debt retired through income and surplus.
Sinking fund reserves.
Miscellaneous fund reserves.
Appropriated surplus not specifically invested.
Total appropriated Surplus.
Profit and loss—Balance.
Total COrpOrate Surplus.
O
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