G05 
 U55 
 
CORNELL 
 
 UNIVERSITY 
 
 LIBRARY 
 
FORM OF 
 
 GENERAL BALANCE SHEET 
 
 STATEMENT 
 
 FOR 
 
 CARRIERS BY WATER 
 
 AS PRESCRIBED BY THE 
 
 INTERSTATE COMMERCE COMMISSION 
 
 IN ACCORDANCE WITH SECTION 20 OF 
 
 THE ACT TO REGULATE COMMERCE 
 
 FIRST ISSUE 
 
 Effective on January 1, 1913 
 
 WASHINGTON 
 
 GOVEHNMENT PRINTING OFFICE 
 
 1912 
 
Cornell University 
 Library 
 
 The original of tiiis bool< is in 
 tine Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924032476495 
 
FORM OF 
 
 GENERAL BALANCE SHEET 
 
 STATEMENT 
 
 FOR 
 
 CARRIERS BY WATER 
 
 AS PRESCRIBED BY THE 
 U/. INTERSTATE COMMERCE COMMISSION 
 IN ACCORDANCE WITH SECTION 20 OF 
 THE ACT TO REGULATE COMMERCE 
 
 FIRST ISSUE 
 
 Effective on January 1, 1913 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 
 1912 
 
involved in the said Form of General Balance Sheet 
 Statement, First Issue, in Qonfomiity therewith: Pro- 
 vided, however, That nothing in this order shall be con- 
 strued as depriving a carrier of the right to make whatever 
 analysis of balance-sheet entries it may deem proper for 
 the information of stockholders or of officials who have 
 the management of its property. 
 
 It is further ordered, That a copy of the said Form of 
 General Balance Sheet Statement, First 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 January 1, 1913, be, and is 
 hereby, fixed as the date on which the said Form of 
 General Balance Sheet Statement, First Issue, shall 
 become effective. 
 
 By the Commission: 
 
 [seal.] John H. Marble, 
 
 Secretary. 
 
INTRODUCTORY LETTER. 
 
 Interstate Commerce Commission, 
 
 Division of Carriers' Accounts, 
 
 Washington, November 11, 1912. 
 To Carriers : 
 
 This Form of General Balance Sheet Statement for 
 Carriers by Water is issued in accordance with an order 
 of the Interstate Commerce Commission, the text of 
 which immediately precedes this letter. From and 
 after the effective date of this order, by virtue of the 
 provisions of the act to regulate commerce, the rules and 
 definitions stated in the form become obligatory upon 
 persons having direct charge of the accounts of carriers 
 concerned, and such persons will be held responsible for 
 proper application of them. Under the provisions of 
 the law it is unlawful for any carrier, .or for the persons 
 in charge of its accounts, to keep accounting records con- 
 cerning balance-sheet items in any other form than that 
 here prescribed; this requirement, however, is not to be 
 interpreted as prohibiting a carrier from making any 
 desired analysis of balance-sheet entries for the infor- 
 mation of stockholders or of managing officials. 
 
 The schedules of accounts as outlined in this form will 
 be incorporated in the forms for annual reports of car- 
 riers by water for the year ending December 31, 1913, 
 and the statement of accounts in the annual report 
 should be in accordance with the text of the form here 
 issued. 
 
 It is appropriate that public acknowledgment should 
 be made to the Association of Water Line Accounting 
 Officers, and to the executive committee of that asso- 
 
 (5) 
 
ciation, for their hearty cooperation in working out the 
 details of this form. While the rules as now promul- 
 gated do not conform in all respects to the recommenda- 
 tions of that association, the assistance of its representa- 
 tives in the consideration of the questions involved 
 herein has been of great value. 
 
 To the end that substantial uniformity in the inter- 
 pretation of the rules herein prescribed be maintained, 
 carriers are invited to submit all questions of doubtful 
 interpretation to this office for consideration and decision. 
 
 Chas. a. Ltjtz, 
 Chief Examiner of Accounts. 
 
BALAIfOE SHEET AOOOUNTS. 
 
 Page. 
 General Insteuotions 10 
 
 GROUPING OF ACCOUNTS. 
 Assets: 
 
 Permanent and Long-Term Investments 13 
 
 Working Assets 16 
 
 Accrued Income Not Due 18 
 
 Deferred Debit Items 18 
 
 Profit and Loss 22 
 
 Liabilities: 
 
 Stock 22 
 
 Long-Term Debt 23 
 
 Working Liabilities 25 
 
 Accrued Liabilities Not Due 26 
 
 Deferred Credit Items 26 
 
 Appropriated Surplus 28 
 
 Profit and Loss 29 
 
 ACCOUNTS. 
 Assets: 
 
 Permanent and Long-Term Investments — 
 I. Real Property and Equipment — 
 
 WB 1-A. Investment 13 
 
 WB 1-B. Reserves for Accrued Depreciation — Cr. 13 
 WB 2. Trust Deposits for Mortgaged Property- 
 Released 14 
 
 II. Securities — 
 
 WB 3. Securities of Transportation System 
 
 Corporations — Pledged 14 
 
 WB 4. Securities of Transportation System 
 
 Corporations — Unpledged 14 
 
 III. Long-Term Advances — 
 
 WB 5. Long-Term Advances to Transportation 
 
 System Corporations 15 
 
 IV. Other Investments — 
 
 WB 6. Miscellaneous Investments 15 
 
 WB 7. Intangible Assets 16 
 
 (7) 
 
8 
 
 Assets — Continued. 
 
 Working Assets — Page. 
 
 WB 8. Cash 16 
 
 WB 9. Marketable Securities 16 
 
 WB 10. Loans and Bills Receivable 16 
 
 WB 11. Traffic Balances Owed by Other Companies 17 
 
 WB 12. Net Balance Due from Agents, Pursers, and 
 
 Stewards 17 
 
 WB 13. Insurance Claims Against Underwriters 17 
 
 WB 14. Miscellaneous Accounts Receivable 17 
 
 WB 15. Materials and Supplies 17 
 
 WB 16. Other Working Assets 18 
 
 Accrued Income Not Due— 
 
 WB 17. Unmatured Dividends and Interest Receivable. 18 
 
 WB 18. Unmatured Rents Receivable 18 
 
 Deferred Debit Items — 
 
 WB 19. Temporary Advances 18 
 
 WB 20. Rents Paid in Advance 19 
 
 WB 21. Insurance Premiums Paid in Advance 19 
 
 WB22. Taxes Paid in Advance 19 
 
 WB 23. Unextinguished Discount on Capital Stock 19 
 
 WB 24. Unamortized Debt Discount and Expense 19 
 
 WB 25. Abandoned Property, Chargeable to Operating 
 
 Expenses 20 
 
 WB26. Special Deposits 20 
 
 ■WB27. Sinking Fund Assets 20 
 
 WB 28. Insuiance and Other Reserve Fund Assets. ... 21 
 
 WB 29. Provident Fund Assets 21 
 
 WB 30. Open Voyage Expenses 21 
 
 WB 31. Other Deferred Debit Items 22 
 
 Profit and Loss — 
 
 WB 32. Balance 22 
 
 Liabilities: 
 
 Stock— 
 
 WB33. GapitalStocK 22 
 
 WB 34. Stock Liability for Conversion of Securities. . . 23 
 
 WB 35. Premiums on Capital Stock 23 
 
 Long-Term Debt — 
 
 WB36. Fundeddebt 23 
 
 WB 37. Obligationsfor Long-Term Advances Received. 24 
 
 Working Liabilities — 
 
 WB 38. Loans and Bills Payable 25 
 
 WB 39. Audited Vouchers and Wages Unpaid 25 
 
 WB 40. Traffic Balances Owed to Other Companies 25 
 
 WB 41 . Miscellaneous Accounts Payable 25 
 
 WB 42. Matured Dividends and Interest Unpaid 25 
 
 WB 43. Matured Rents Unpaid 25 
 
9 
 
 LiABiLiTiES — Continued. 
 
 Working Liabilities^-Continued. Page. 
 
 WB 44. Matured Long-Term Debt Unpaid 25 
 
 WB 45. Working Advances Owed to Other Companies . . 26 
 WB 46. Other Working Liabilities 26 
 
 Accrued Liabilities Not Due — 
 
 WB 47. Unmatured Dividends, Interest, and Rents 
 
 Payable 26 
 
 WB48. Taxes Accrued 26 
 
 Deferred Credit Items — 
 
 WB 49. Unextinguished Premium on Debt 26 
 
 WB 50. Operating Reserves 27 
 
 WB 51. Liability on Account of Provident Funds 27 
 
 WB 52. Open Voyage Revenues 27 
 
 WB 53. Other Deferred Credit Items 27 
 
 Appropriated Surplus — 
 
 WB 54. Surplus Invested in Property since Decem- 
 ber 31, 1912 28 
 
 WB 55. Surplus Invested in Property to December 31, 
 
 1912 28 
 
 WB 56. Reserves from Income or Surplus 28 
 
 Profit and Loss — 
 
 WB57. Balance 29 
 
 68054°— 12 2 
 
GENERAL INSTETJCTIONS. 
 
 1. Balance-Sheet Accounts. — The term halance-sTieet 
 accounts is used to designate those accounts which are 
 provided for the purpose of combining and summariz- 
 ing the balances in ledger accounts to show the assets, 
 habilities, and profit and loss, of the accounting com- 
 pany's business at a given time. Where the title and defi- 
 nition of a balance-sheet account clearly indicate that it 
 is a summary of other accounts, it is not required that a 
 special ledger accoimt shall be provided under such title 
 to include the balances from accounts usually carried on 
 the ledger. 
 
 2. Cost or Book Value of Securities Owned. — The 
 term cost or hooJc value, used in the text of various ac- 
 counts representing securities owned, is intended to recog- 
 nize the carrier's option of carrying its investments in 
 securities either at cost or at a reasonable valuation other 
 than cost. Whenever securities are acquired they should 
 be entered on the books at cost. If subsequently the car- 
 rier desires to adjust the book value of securities because 
 of substantial appreciation or depreciation, the entries in 
 its books with respect to such securities, as well as in its 
 annual reports to the Commission, should clearly show 
 the reasons for making the adjustments. 
 
 3. Eeacquired Securities. — Capital stock or funded 
 debt liability accounts in the balance sheet are in- 
 tended to include only the par value of capital stock or 
 funded debt securities that have been actually issued to 
 bona fide holders for value (or after such issue by an- 
 other company have been assumed by the accounting 
 company); if after such issue (or assumption) they have 
 been reacquired by the carrier under circumstances which 
 require that they shall not be treated as paid or retired, 
 
 (10) 
 
11 
 
 they should be charged at par value to an appropriate 
 asset account, but on the balance-sheet statement they 
 should be omitted from the assets and deducted from the 
 liabilities, except in the case of securities held in sinking 
 or other funds, when they should be shown separately as 
 a deduction from both the asset and liability accounts, ia 
 order that the asset accounts for securities owned will 
 include only securities of other companies and that the 
 liability accounts for securities issued or assumed will 
 include only those in the hands of the public. 
 
 If any such securities are reacquired for more or less 
 than their par value, the diflPerence between the par value 
 and the cost of reacquirement should be debited or credited 
 to Profit and Loss Account, as should also any amounts 
 carried in the discount and premium accounts with re- 
 spect to such securities. 
 
 In case the securities were, when issued, exchanged for 
 property of substantially less value than the par value 
 of the securities and the excess value is included in the 
 property accounts, or if specific discounts on the sale of 
 the securities have been included in the property accounts, 
 an adjustment should also be made for such discounts or 
 excess included in the property accounts by crediting so 
 much thereof as pertains to the securities reacquired to 
 the property accounts and charging it to profit and loss. 
 
 4. Funded Debt DEriNED. — By funded debt, as the 
 term is here used, is meant the par value of all bonds, 
 notes, and other evidences of indebtedness (except open 
 accounts for advances) which, by the terms of the crea- 
 tion of the debt, do not mature untU more than one year 
 after the date of such creation. No two amounts of 
 funded debt should be considered as of the same class unless 
 agreeing in all four of the following characteristics, viz: 
 (1). Mortgage or other lien or security therefor; (2) rate 
 of interest; (3) interest dates; and (4) date of maturity, 
 except that any issue of securities agreeing in the first 
 three characteristics but maturing serially may be 
 treated as of the same class. Where any portion of the 
 funded debt rests only on the general credit of the cor- 
 
12 
 
 poration and is not specially secured or supported by lien 
 of any character, it should, for the purpose of these 
 accounts, be known as a debenture. Debentures include 
 promissory notes unsecured by mortgage or other lien, 
 and securities commonly loiown as plain bonds. 
 
 5. Unfunded Debt Defined. — Unfunded debt, as the 
 term is here used, means all debts which, by the terms of 
 their creation, mature on demand or one year or less 
 from the date of their creation. 
 
 6. Contingent Assets and Liabilities. — Contingent 
 assets and liabilities should not be included in the body 
 of the balance-sheet statement, but should be shown in 
 detail in a supplementary statement accompanying the 
 balance sheet. Contingent assets represent possible 
 sources of value contingent upon the fulfillment of con- 
 ditions regarded as uncertain. Contingent liabilities in- 
 clude obligations which may, under certain conditions, 
 become obligations of the company, but are neither di- 
 rect nor assumed obligations at the date of the balance 
 sheet. 
 
 7. Cancellation of Conflicting Previous Instruc- 
 tions. — The rules provided in this classification supersede 
 conflicting instructions in any classification previously 
 issued for carriers by water. 
 
TEXT EXPLANATORY OF ACCOUNTS IN THE GENERAL 
 BALANCE-SHEET STATEMENT FOR CARRIERS BY WATER. 
 
 ASSETS. 
 
 PERMANENT AND LONG-TERM INVESTMENTS. 
 I. Real Property and Equipment. 
 WB 1-A. Investment. 
 
 This account should include the balances representing 
 the book value or cost of all property and equipment de- 
 voted to the service of transportation by water, classified: 
 (a) Floating Equipment, (6) Terminal Property, (c) General 
 Expenditures. 
 
 Note. — Terminal property should be subdivided so as to show sepa- 
 rately: (1) The property and improvements owned by the accounting 
 carrier; (2) the cost ot improvements made by the accounting carrier upon 
 property held by it under long-term lease. 
 
 WB 1-B. Reserves for Accrued Depreciation — Or. 
 
 This account should include amounts charged, with re- 
 spect to equipment and other property in service at the date 
 of the balance sheet, to Operating Expenses (or to other ac- 
 counts) to cover depreciation on such property. 
 
 The amounts included herein should be classified: (a) 
 Wharves, Docks, Buildings, and Fixtures; (6) Floating Equip- 
 ment. 
 
 Note A.— Item (b) should be subdivided, when practicable, as follows: 
 (1) Vessel Hulls; (2) Vessel Machinery; (3) Vessel Furnishings and Fixtures. 
 Note B.— When property (other than land), the cost bl which has been 
 charged to account WB 1-A, "Investment," is abandoned, demolished, or 
 otherwise retired from service for the purpose of or by reason of its replace- 
 ment with property of like purpose, that account should be credited with an 
 amount equal to the amount at which such property stands charged therein 
 at the time of such retirement. Concurrently, balance-sheet account 
 WB 1-B, "Ileserves for Accrued Depreciation— Cr.," should be charged 
 with the amount carried therein with respect to the property retired. 
 Proper account should be talcen of salvage, and the remaining amount, if 
 any, should be charged to the appropriate account under Operating Ex- 
 penses. 
 
 Note C— When property (other than land), the cost of which has been 
 charged to account WB 1-A, "Investment," is abandoned, or withdrawn 
 from service and not replaced, that account should be credited with an 
 amount equal to tlie amount at which such property stands charged therein 
 at the time of such destruction or retirement. Concurrently, the balance- 
 sheet account WB 1-B, "Reserves for Accrued Depreciation— Or.," should 
 be charged with the amount carried therein with respect to such property 
 destroyed or otherwise retired. Proper account should be taken of salvage, 
 and any adjustment necessary should be made in Profit and Loss account. 
 
 (13) . 
 
14 
 
 WB 2. Trust Deposits for Mortgaged Property Released. 
 
 This account should include amounts realized from the 
 sale of mortgaged property or from insurance recovered on 
 such property lost or destroyed when under the terms of the 
 mortgage such amounts are required to be deposited with 
 trustees to be held until the property is replaced or the mort- 
 gage obligations retired. 
 II. Transportation Securities. 
 
 WB 3. Securities of Transportation System Corporations — 
 Pledged. 
 
 This account should include the cost or book value of 
 seciu-ities of controlling, affiliated, and subsidiary companies 
 whose property is used by or forms a part of the transporta- 
 tion system of the accounting company, which securities 
 are pledged as collateral security for any of the accounting 
 company's funded debt or other outstanding obligations. It 
 should also include the cost or book value of securities of 
 terminal, ferry, and similar companies whose property is 
 used by the accounting company in the transaction of its own 
 transportation business, when said securities are pledged as 
 security for outstanding obligations. 
 
 Amounts reported in this account should be classified under 
 the subheadings: (a) Stocks, (6) Funded Debt, (c) Miscel- 
 laneous. 
 
 Note. — Securities that are held as marketable securities should not be 
 included in this account. 
 
 WB 4. Securities of Transportation System Corporations — 
 Unpledged. 
 
 This account should include the cost or book value of 
 unpledged securities of controlling, affiliated, and subsidiary- 
 companies whose property is used by or forms a part of the 
 transportation system of the accounting company, the se- 
 curities being held for the purpose of preserving the integrity 
 of the system. There should also be included in this ac- 
 count the cost or book value of securities of terminal, ferry, 
 and similar companies whose property. is used by the ac- 
 counting company in the transaction of its own transportation 
 business, when said securities are unpledged. 
 
 Amoimts reported in this account should be classified 
 under the subheadings: (a) Stocks, (b) Funded Debt, (c) 
 Miscellaneous. 
 
 Note.— Securities that are held as marketable securities should not be 
 included in this account. 
 
15 
 
 III. Long-Term Advances. 
 
 WB 5. Long-Term Advances to Transportation System Corpora- 
 tions. 
 
 This account should include the balances in accounts rep- 
 resenting cash advanced to controlling, affiliated, and sub- 
 sidiary companies whose property is or will be used as a part 
 of the transportation system of the accounting company to 
 enable such companies to pay for real property and equip- 
 ment, when such advances are of a permanent nature, or 
 when it is understood and intended that the company shall 
 be reimbursed by issuing to it the debtor company's securi- 
 ties, and that such securities when received shall be charged 
 to account WB 3 or account WB 4. 
 
 Note.— Advances for the purpose stated in the text of this account, the 
 amount of which it is proposed to recover in cash or securities not necessary 
 for corporate oontroi, which may be sold or held as free assets, should be 
 included in account WB 19 (o), "Temporary Advances to System Cor- 
 porations." 
 
 rV. Other Investments. 
 
 WB 6. Miscellaneous Investments. 
 
 (a) Physical Property. — ^This account should include 
 investments of a permanent natm-e in physical property other 
 than that held for the operation of the carrier's property as a 
 transportation agency. It should include such items as invest- 
 ments in coal and other mines, mineral and timber lands, 
 manufacturing plants, lands and other property acquired and 
 held in anticipation of future use, buildings (not used in trans- 
 portation operations) held for rent, and other property, not a 
 part of the carrier's plant for the maintenance and operation 
 of the property devoted to furnishing transportation and 
 facilitieg incident thereto. 
 
 (5) Securities Pledged. — ^This account should include invest- 
 ments, not provided for in accounts WB 3 and WB 4, in securi- 
 ties of other companies pledged as collateral for other securities 
 issued or assumed. It should include the cost or book value 
 of such securities held as permanent investments, such as 
 secuities of railway companies, express companies, steamship 
 lines (not in the transportation system of the accounting com- 
 pany), and other enterprises, and memberships of permanent 
 value in boards of trade and other commercial organiaations. 
 
 (c) Securities Unpledged. — ^This account should include 
 investments, not provided for in accounts WB 3 and WB 4, 
 in securities of other companies held unpledged and not held 
 as marketable securities (account WB 9). It should include 
 the cost or book value of such securities held as permanent 
 investments, such as securities of railway companies, express 
 companies, steamship lines (not in the transportation system 
 
16 
 
 of tlie accounting company), and other enterprises, and mem- 
 berships of permanent value in boards of trade and other com- 
 mercial organizations. 
 
 (d) Other Miscellaneous Investments. — This account should 
 include miscellaneous investments not provided for in the 
 foregoing subaccounts (a), (6) qr (c). 
 WB 7. Intangible Assets. 
 
 This account should include all amounts representing 
 excess of purchase price over actual (appraised) value of 
 tangible property. Charges should be made to this account 
 whenever the actual money value of the consideration given 
 for tangible property or equipment is in excess of the appraised 
 value of such tangible property or equipment at the time of 
 acquisition. 
 
 This account should also include other intangible assets not 
 provided for elsewhere in this classification when such assets 
 are actually existent and the value thereof is determinable. 
 
 When intangible assets are wasting in character, the adjust- 
 ments of this account to the actual value of the intangible 
 assets possessed should be through Profit and Loss. 
 
 WORKING ASSETS. 
 
 WB 8. Cash. 
 
 This account should include current funds in the hands of 
 financial officers and agents, deposits in banks or with trust 
 companies available for use on demand, including deposits to 
 pay declared dividends or matured coupons, and cash in transit 
 for which agents, pursers, and stewards receive current credit. 
 
 WB 9. Marketable Securities. 
 
 This account should include the cost or book value of all 
 securities, except securities issued or assumed by the account- 
 ing company, held in the company's treasury unpledged and 
 free for sale and not necessary or desirable for the accounting 
 company to hold for the purpose of maintaining the integrity 
 of its transportation system. These securities should be classi- 
 fied as (a) Stocks, (6) Funded Debt, and (c) Miscellaneous. 
 
 WB 10. Loans and Bills Receivable. 
 
 This account should include the book value of all collectible 
 obligations in the form of loans and bills receivable or other 
 similar evidences of money receivable on demand or within a 
 time not exceeding one year. 
 
 Note. — This does not include time loans which mature more tnan one 
 year after date of issue, considered as investments, or loans to controlling, 
 affiliated, and subsidiary companies, such as are described .under accounts 
 WB 6 and WB 19 (a). 
 
. 17 
 
 WB 11. TraflBc Balances Owed by Other Companies. 
 
 This account should include the net amount owed by 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. 
 
 Note.— The net amount reported under this account is not the net balance 
 between accounts WB 11 and WB 40. 
 
 WB 12. Net Balance Due from Agents, Pursers, and Stewards. 
 
 This account should include the net balances due in current 
 
 account from agents, pursers, stewards, and other emplo ees 
 
 and representatives charged with the collection or custody of 
 
 current revenue. 
 
 Note. — Amounts advanced to general and special agents as working funds 
 should not be included in this account but in account WB 19 (6). 
 
 WB 13. Insurance Claims against Underwriters. 
 
 This account should include such balances in open accounts 
 as represent claims for loss, damage, or sacrifice arising from 
 or caused by accidents or dangers of navigation; it embraces 
 deterioration or extra outlay incurred by the carrier in con- 
 nection with vessel or cargo, when chargeable to underwriters, 
 and also any other claims chargeable to insurers under the 
 terms of insurance policies, such as personal injuries, partic- 
 ular and general averages and damages resulting from col- 
 lisions, etc. 
 
 WB 14. Miscellaneous Accounts Receivable. 
 
 This account should include amounts due on audited 
 accounts considered good, such as those due from the United 
 States or other governments for transportation of government 
 property; miscellaneous bills against other steamship com- 
 panies; bills against corporations, firms, and individuals; 
 rents collectible; dividends declared and collectible but not 
 collected; interest collectible on bills and accounts receivable, 
 and on mortgages,deposits, securities, and other similar items. 
 
 Note A.— The amount to be reported under this account is not the net 
 balance between accounts WB 14 and WB 41. 
 
 Note B.— Open accounts such as are described under accounts WB 5 
 and WB 19 for advances to controllmg afBliated or subsidiary companies, 
 should not be included in this account. 
 WB 15. Materials and Supplies. 
 
 This accoimt should include the balances representing the 
 cost of all unapplied material, such as shop material, articles 
 in process of manufacture by the company, extra propellers, 
 fuel, stationery, commissary supplies; etc. 
 
18 • 
 
 WB 16. Other Working Assets. 
 
 This account should include items of working assets not 
 covered by accounts WB 8 to WB 15, Inclusive. It is intended 
 to include items which have been advanced beyond the stage 
 of accounts properly classifiable under accounts WB 30 and 
 WB 31 and which have not yet reached the stage of audited 
 accoimts properly classifiable under account WB 14. This 
 account includes such items aa claims in process of collection 
 from parties at fault, amounts due from other carriers for mile- 
 age or tickets honored for which reports or accounts have not 
 been received from or rendered to other carriers, advanced 
 charges billed out on waybills not reported received at the 
 end of the month, and other similar items 
 ACCRUED INCOME NOT DUE. 
 
 WB 17. Unmatured Dividends and Interest Receivable. 
 
 This account should include the amount of dividends 
 declared on stocks owned, dividends accrued on such stocks 
 when contracts require that the dividends be paid at stated 
 times, and interest on loans accrued to the date of balance 
 sheet, but not due or collectible until after that date. 
 
 WB 18. Unmatured Rents Receivable. 
 
 This account should include rents, under leases, accrued to 
 the date of balance sheet, but not due or collectible until 
 after that date. 
 DEFERRED DEBIT ITEMS. 
 
 WB 19. Temporary Advances. 
 
 (a) Temporary Advances to System Corporations. — This 
 account should include balances in open accounts represent- 
 ing cash advanced to controlling, affiliated, and subsidiary 
 companies, to enable such companies to pay interest on their 
 funded debt; for deficits resulting from the operation of such 
 companies, and for other purposes of a similar nature; also 
 advances to controlling, affiliated, and subsidiary companies 
 to enable them to pay for real property and equipment, when 
 it is understood and intended that the advances shall be re- 
 paid in cash, or by issuing to the accounting company the 
 debtor company's seciirities, and that such securities, when 
 received, shall be sold or held in the treasury as free assets. 
 
 Note.— When the securities referred to in this account are to be held in 
 order to maintain the integrity of the accounting company's transporta- 
 tion system, the amounts advanced should be included in account WB 5 
 and transferred, when the securities are received, to account WB 3, if 
 pledged, or to account WB 4 if not pledged. 
 
 (6) WorHng Funds. — This account should include amounts 
 advanced to agents and others as working funds from which 
 certain expenditures are to be made and accounted for. 
 
19 
 
 (c) Other Advances. — This account should include other 
 advances not properly classifiable under (a) and (6) above or 
 under account WB 5. 
 WB 20. Rents Paid in Advance. 
 
 This account should include the balances in the accounts 
 representing rents paid in advance of the enjoyment of the 
 term. As the term for which the rent is paid is consumed this 
 account should be credited and the appropriate rent account 
 in the Income Account should be charged. 
 WB 21. Insurance Premiums Paid in Advance. 
 
 This account should include insurance premiums paid in 
 advance of their accrual, which premiums are to be appor- 
 tioned and charged, as they accrue, to appropriate expense 
 accounts. 
 WB 22. Taxes Paid in Advance. 
 
 This account should include the excess of taxes paid over 
 the accrued amount properly chargeable against Income (or 
 other accoimts) to the date of the balance sheet. 
 "WnB 23. Unextinguished Discount on Capital Stock. 
 
 If J;he net of the balances in the discount and premium 
 accounts for all classes of actually outstanding capital stock 
 of the accounting company is a debit balance, the amount 
 should be stated in this account. 
 
 Note A.— Ledger accounts slioiild be provided for each class of capital 
 stock issued or assumed by tbe accounting company to cover the discounts 
 and premiums from sale or exchange thereof (except capital stock which 
 has been sold and reacquired by or in behalf of the accounting company) 
 when the actual money value of the consideration at the time of such sale or 
 exchange is less or more than the value of the capital stock at par. When 
 the balances in these accounts are debit balances, they should be carried 
 therein until oflset by premiums realized on subsequent sales of the same 
 class of stock, by assessments levied on the stockholders, by ^propriations 
 of income or surplus for that purpose, or by charges to Profit and Loss 
 upon retirement of the stock. Entries in these accounts representing pre- 
 miums realized should be carried permanently, unless offset by discounts 
 suffered on sales of the same class of stock or by credits to Profit and Loss 
 upon retirement of the stock. 
 
 Note B.— No two stocks should be considered as of the same class unless 
 they are equal in their voting rights, their dividend or interest rights, and 
 the conditions xmder which they may be retired. 
 WB 24. Unamortized Debt Discount and Expense. 
 
 If the net of the balances in the discount and premium 
 accounts for all classes of actually outstanding funded debt 
 is a debit balance, the amount should be stated in this account. 
 In this account should also be included bona fide commis- 
 sions and legal expenses paid directly in connection with the 
 issuance and sale of funded debt securities. 
 
 Note A.— Ledger accoimts should be provided for each class of funded 
 debt issued or assumed by the company to cover the discounts and pre- 
 miums from sale or exchange thereof (except funded debt which has been 
 
20 
 
 sold and reacquired by or in behalf of the company) when the actual money 
 value of the consideration at the time of such sale or exchange is less or more 
 than the 7alue of the funded debt at par and the accrued interest thereon, 
 if any, and the expense connected with the issuance of such debt. At or 
 before the close of each fiscal period there should be charged to the Income 
 for that period (and credited to the discount and premium accounts in which 
 the discount and expense is carried) such proportion of the discount and 
 expense on outstanding funded-debt obligations as may be applicable to 
 that period. This proportion should be determined according to a rale, 
 the uniform application of which throughout the interval between the date 
 of sale and the date of maturity will extinguish the discounts and expense 
 on funded debt. The charge to Income for any period must not exceed the" 
 proportion applicable to that period, and a charge should be made for each 
 period so long as any portion of the discounts and expense remains unex- 
 tinguished. In order that the discounts may be extinguished earlier, the 
 company may, at its option, charge to Profit and Loss all or any portion of 
 the discounts and expense on funded debt remaining at any time unex- 
 tinguished. 
 
 Note B.— No two issues of funded debt should be considered as of the 
 same class unless they have the same mortgage or other 'ien or security, 
 the sajne rate of interest, interest dates, and date of maturity; except that 
 any issue of funded debt agreeing in the first three characteristics, but 
 maturing serially, may be considered as of the same class. 
 
 WB 25. Abandoned Property, Chargeable to Operating Ex- 
 penses. 
 
 This account is intended as a suspense account to which 
 may be charged certain costs representing important pieces 
 of property abandoned because of its replacement with prop- 
 erty of like purpo.se when the cost of such abandoned property 
 would, if included in the operating expenses for a single year, 
 unduly burden such accounts for that year. It is to be used 
 only after permission of the Interstate Commerce Commission 
 has been asked and given and is not to be applied to lands 
 abandoned or to equipment retired from service. Amounts 
 included in the account are to be distributed to operating 
 expenses through a period of years, the number of which will 
 be determined when permission to use the account is granted, 
 and the balance remaining unextinguished on the date of the 
 balance sheet should be included herein. 
 
 WB 26. Special Deposits. 
 
 This account should include amounts realized from the sale 
 of securities and held by trustees for disbursement when the 
 purposes for which the securities are sold are accomplished; 
 special deposits (other than in sinking funds) for the payment 
 of debts and interest, not matured; also money and securities 
 (except securities includible in accounts WB 3, WB 4, and 
 WB6) deposited to insure the performance of contracts; and 
 other deposits of a special nature not provided for elsewhere. 
 
 WB 27. Sinking Fimd Assets. 
 
 This account should include the ledger balances covering 
 the amount of cash and the cost or book value of live securities 
 
21 
 
 of other companies and the par value of securities issued or 
 assumed by the accounting company and other assets in the 
 hands of trustees of sinking and other funds for the purpose of 
 redeeming outstanding obligations; also other amounts de- 
 posited with such trustees, except as provided for in account 
 WB 2. A separate account should be provided for each 
 sinking fund. 
 
 In stating this account on the balance-sheet statement the 
 par value of securities issued or assumed by the accounting 
 company and carried in this account should be deducted from 
 the total in order to show the net assets in the funds, other than 
 the company's own securities. (See paragraph 3, p. 10.) 
 WB 28. Insurance and Other Reserve Fund Assets. 
 
 This account should include the ledger balances covering 
 the amount of cash and the cost or book value of securities of 
 other companies and the par value of securities issued or as- 
 sumed by the accounting company and of other assets in the 
 hands of trustees or managers of insurance funds; also depre- 
 ciation funds, and other funds that have been raised and 
 specifically set aside or invested by the company for specific 
 purposes (except special deposits, provident funds, and sink- 
 ing funds for the retirement of obligations). A separate account 
 should be provided for each fund. 
 
 In stating this account on the balance-sheet statement the 
 par value of securities issued or assumed by the accounting 
 company and carried in this account should be deducted 
 from the total in order to show the net assets in the funds, 
 other than the company's own securities. (See paragraph 3, 
 p. 10.) 
 WB 29. Provident Fund Assets. 
 
 This account should include the ledger balances covering 
 the amount of cadi and the cost or book value of securities of 
 other companies and the par value of securities issued or 
 assumed by the accounting company and other assets in the 
 hands of trustees or managers of employees' pension funds, 
 savings funds, relief, hospital, and other association funds 
 (whether contributed by the company, by employees, or by 
 others), when such trustees or managers are acting for the com- 
 pany in the administration of such funds. If such funds are 
 held in the company's treasury, unidentified and not invested, 
 they should be included in account WB 8. 
 WB 30. Open Voyage Expenses. 
 
 In this.account should be included the amount representing 
 accrued operating expenses which are held in suspense imtil 
 the completion of the voyages of the vessels to which the ex- 
 penses pertain. 
 
WB 31 . Other Deferred Debit Items. 
 
 In this account should be included suspense accounts show- 
 ing debit balances that can not be entirely cleared and dis- 
 posed of until additional information is received, such as 
 claims paid when found to be correct but in advance of inves- 
 tigation with other carriers; charges for work done or materials 
 furnished for which bills have not been received from the 
 proper departments; items awaiting adjustment between 
 accounts, such as cost of work done in ad^'ance of receipt of 
 proper authority or appropriation; debit balances in shop 
 expense and store expense accounts; also amounts to be 
 spread over a stated term not provided for in accounts WB 23 
 and WB 25 or elsewhere, and debit balances in operating 
 reserve accounts to be cleared by future charges to Operating 
 Expenses. 
 
 PROFIT AND LOSS. 
 WB 32. Balance. 
 
 When the Profit and Loss Account shows a debit balance 
 the amount of which exceeds the appropriated surplus included 
 in accounts WB 54, WB 55, and WB 56, the amounts in those 
 accounts should be stated as deduction items on the asset side 
 of the balance sheet immediately following Profit and Loss — 
 Balance, from which they should be deducted, the difference 
 being extended as the net corporate deficit. (See account 
 WB 57.) 
 
 LIABIIilTIES. 
 
 STOCK. 
 
 WB 33. Capital Stock. 
 
 This account should include the total par value of certifi- 
 cates or receipts issued to represent permanent interests in 
 the accounting company or interests which, if terminable, 
 are so only at the option of the company. The amounts in- 
 cluded in this account should be divided so as to show: (1) 
 The par value of certificates issued and outstanding and not 
 held by the company, its agents or trustees, or subject to its 
 control; (2) the par value of certificates (pledged or un- 
 pledged) held subject to its control or for its benefit in the 
 company's treasury, or by its agents or trustees. In stating 
 the accounts on the balance-sheet statement, the latter 
 amount should be deducted from the total in order to 
 show only the par value of the certificates actually outstand- 
 ing in the hands of the public at the date of the balance-sheet 
 statement. (See paragraph 3, p. 10.) 
 
 The amounts included herein should be fiu-ther subdivided 
 so as to show the amount of each class of stock issued, as follows: 
 
 (o) Common Stock. — Stocks whose clairtts in the distribu- 
 tion of dividends are subordinate to the claims of all other 
 stocks. 
 
23 
 
 (5) Preferred Stock. — Stocks having a first claim upon such 
 dividends as may be distributed. 
 
 (c) 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 should 
 be included in the account covering the stock for which the 
 certificates are issued. 
 
 Note.— When a general levy or assessment is made against the holders 
 of capital stock requiring the payment of any sum for the use of the com- 
 pany in addition to the consideration agreed upon at the time of sale the 
 amount collected upon such levy or assessment should be credited to the 
 appropriate stock discount and premium account. 
 
 WB 34. Stock Liability for Conversion of Securities. 
 
 This account should include the company's liability under 
 agreements to exchange its capital stock for the outstanding 
 secturities of constituent companies whose physical property 
 has been acquire^ under such agreements but whose securities 
 have not yet been surrendered for exchange. 
 WB 35. Premiums on Capitel Stock. 
 
 If the net of the balances in the discount and premium 
 accounts for all classes of capital stock sold or exchanged is a 
 credit balance the amount should be stated in this account. 
 Note A.— Ledger accoimts should be provided for each class of capital 
 stock issued or assumed by the accounting company to cover the discounts 
 and premiums from sale or exchange thereof (except capital stock which has 
 been sold and reacquired by or in behalf of the accounting company) when 
 the actual money value of the consideration at the time of such sale or ex- 
 change is less or more than the value of the capital stock at par. When 
 the balances in these accounts are debit balances they should be carried 
 therein until offset by premiums realized on subsequent sales of the same 
 class of stock, by assessments levied on the stockholders, by appropriations 
 of income or surplus for that purpose, or by charges to Profit and Loss 
 upon retirement of the stock. Entries in these accounts representing 
 premiums realized should be carried permanently imless offset by discounts 
 suffered on sales of the same class of stock or by credits to Profit and Loss 
 upon retirement of the stock. 
 
 Note B. — No two stocks should be considered as of the same class unless 
 they are equal in their voting rights, their dividend or interest rights, and 
 the conditions under which they may be retired. 
 
 LONG-TERM DEBT. 
 
 WB 36. Funded Debt. 
 
 There should be included in this account the total par value 
 of outstanding funded debt issued by the accounting com- 
 pany and the total par value of outstanding funded debt 
 issued by other companies the payment of which has been 
 assumed by the accounting company. 
 
 The amounts included in this account should be divided so 
 as to show: (1) The par value of certificates or other evidences 
 of funded debt issued and outstanding and not held by the 
 company, its agents or trustees, or subject to its control; (2) 
 the par value of certificates or other evidences of funded debt 
 
24 
 
 (pledged or unpledged) held in the company's treasury, hy 
 its agents or trustees, or otherwise subject to its control or 
 for its benefit. In stating the accounts in the balance-sheet 
 statement the latter amount should be deducted from the 
 total in order to show only the par value of funded-debt 
 secmities actually outstanding in the hands of the public at 
 the date of the balance-sheet statement. 
 
 The amounts included herein should be further subdivided 
 as follows: 
 
 (a) Mortgage Bonds. — Bondssecured byalienon the property 
 of the company, except as provided in the other subdivisions of 
 this account. 
 
 (6) Collateral Trust Bonds. — Bonds secured by a lien on 
 securities or other commercial paper. Stock trust certificates 
 that are similar in character to collateral trust bonds should be 
 included under this heading, as should also all collateral trust 
 notes running for more than one year. 
 
 (c) Plain Bonds, Debentures, and Notes. — Unsecured certifi- 
 cates of indebtedness. Short-term notes (having a date of 
 maturity one year or less from date of issue) given in payment 
 of temporary indebtedness should not be included under this 
 heading. Short-term notes secured by collateral should 
 (wlien properly treated as funded debt) be classed with 
 collateral trust bonds. 
 
 (d) Equipment Trust Obligations. — Equipment bonds and 
 equipment notes secured by a lien on specific equipment. 
 
 (e) Miscellaneous Funded Obligations. — All funded obliga- 
 tions not provided for by the other .subdivisions of this account, 
 including real estate mortgages executed or assumed, and other 
 similar obligations. 
 
 (/) Receipts Outstanding for Funded Debt. — Receipts for pay- 
 men ts on accoun t of funded debt. When certificates are issued 
 for amounts so paid, the par value should be included in the 
 account covering the class of funded debt for which the certifi- 
 cates are issued. 
 
 (g) Receivers' Certificates. — The par value of outstanding cer- 
 tificates, notes, or other obligations issued by receivers in 
 charge of and operating the property of a carrier, and the par 
 value of certificates, notes, or other obligations issued by re- 
 ceivers and assumed upon reorganization. 
 WB 37. Obligations for Long-Term Advances Received. 
 
 Proprietary, affiliated, and controlled companies should 
 show in this account the amounts advanced to them for acquisi- 
 tion or construction of equipment; for additions and better- 
 ments expenditures; and for construction of buildings, transfer 
 platforms, docks, wharves, piers, etc., when such advances are 
 made imder the conditions described in account WB 5. 
 
25 
 
 WORKING LIABILITIES. 
 
 WB 38. Loans and Bills Payable. 
 
 This account should include the balances representing obliga- 
 tions outstanding in the form of loans and bills payable or other 
 similar evidences of indebtedness payable on demand or within 
 a time not exceeding one year from date of issue. 
 
 Note. — Notes payable more than one year from date of issue should 
 be included in account WB 36. 
 
 WB 39. Audited Vouchers and Wages Unpaid. 
 
 This account should include the amount of audited vouchers 
 or accounts and pay rolls unpaid on the date of the balance 
 sheet. It should . include balances representing unclaimed 
 wages and outstanding pay and time or discharge checks 
 issued in payment of wages. 
 WB 40. Traffic Balances Owed to Other Companies. 
 
 This account should include the net amount owed to other 
 companies in favor of each of which there is a net credit balance 
 in the total of the accounts representing interline freight, pas- 
 senger, and baggage revenues. 
 
 Note.— The net amount reported under this account is not the net balance 
 between accounts WB 11 and WB 40. 
 
 WB 41. Miscellaneous Accounts Payable. 
 
 There should be included in this account unpaid drafts 
 drawn by station agents, unpaid drafts drawn on the company 
 in settlement of freight claims and tickets outstanding, deposits 
 of controlled companies, and other items of the nature of 
 demand liabilities not covered by accounts WB 38, WB 39, 
 W^B 40, WB 42, WB 43, and WB 44. 
 
 Note. — The amount to be reported under this account is not the net bal- 
 ance between accounts WB 14 and WB 41. 
 
 WB 42. Matured Dividends and Interest Unpaid. 
 
 This account should include the amount of dividends pay- 
 able on capital stock and remaining unpaid, uncalled for, or 
 unclaimed at the date of balance sheet; the amount of matm-ed 
 and unpaid interest on funded debt of the accounting company 
 and of other companies when payment has been assumed by 
 the accounting company. 
 
 WB 43. Matured Rents Unpaid. 
 
 This account should include rents due and payable for prop- 
 erty held under leases remaining unpaid at the date of the 
 balance sheet. 
 
 WB 44. Matured Long-Term Debt Unpaid. 
 
 This account should include the amount of matured mort- 
 gage, bonded, and other funded debt payable, but not yet paid, 
 including bonds drawn for redemption through the operation 
 of sinking and redemption fund agreements. 
 
28 
 
 APPROPRIATED SURPLUS. 
 
 WB 54. Surplus Invested in Property since December 31, 1912. 
 This account should include the total amount of appropriated 
 income or surplus expended since December 31, 1912, in the 
 acquisition of property and for improvements, the cost of 
 which is proper, under the classification prescribed for such 
 expenditures, to be included in the accounts making up the 
 total of real property and equipment, such as the cost of prop- 
 erty used in the company's operations as a carrier, the pro- 
 portion of the cost of projects involving additions and better- 
 ments required to be included in such accounts; also amounts 
 of appropriated income or surplus expended since December 31 , 
 1912, in the discharge of the principal (less the discount, if any, 
 suffered at the time of sale) of any indebte4ness incurred in 
 the acquisition or improvement of property the cost of which 
 is included in real property and equipment accounts. 
 
 Note,— This account is intended to include only appropriations of 
 income or surplus definitely set aside for the acquisition of property or for 
 improvements the cost of which should be included in the real property 
 and equipment accounts as shown on the balance sheet. When property is 
 purchased or improvements are made by an advance of cash which is 
 intended to be replaced with the proceeds of a subsequent sale of securities, 
 the amount so advanced should not be included in this account; nor should 
 there be included advances not intended to be replaced by securities, unless 
 the amounts advanced have been definitely appropriated and are consid- 
 ered appropriated surplus as distinguished from Profit and Loss— Balance. 
 
 WB 55. Surplus Invested in Property to December 31, 1912. 
 If a carrier elects to set up the amounts of invested surplus 
 appropriated before January 1, 1913, such appropriations hav- 
 ing been made in all other respects under the conditions 
 stated in account WB 54, the total of the amounts so set up 
 should be shown in this account. 
 
 WB 56. Reserves from Income or Surplus. 
 
 In this account should be grouped all appropriations of 
 income or surplus held in reserve (except as covered by 
 accounts WB 51, WB 54, and WB 55), including unexpended 
 balances of appropriations from income or surplus for addi- 
 tions and betterments. This account should be subdivided 
 under the following heads: 
 
 (a) Invested in Sinking Funds. — Amounts charged against 
 Income or Surplus for sinking-fund payments, and accretions 
 to such funds in the hands of trustees. 
 
 (b) Invested in Other Reserve Funds. 
 
 (c) Not Specifically Invested. 
 
29 
 
 PROFIT AND LOSS. 
 WB 57. Balance. 
 
 This account should include the credit balance in the 
 Profit and Loss Account. 
 
 When the Profit and Loss account shows a debit balance 
 the amount of -which does not exceed the appropriated sur- 
 plus included in accounts WB 54, WB 55, and WB 56, it 
 should be stated on the liability side of the balance sheet 
 and deducted from their total, the difference being extended 
 to the total column as the net corporate surplus. When, 
 however, the debit balance in Profit and Loss exceeds the 
 appropriated surplus as shown in accounts WB 54, WB 55, 
 and WB 56, the amounts in those accounts should be stated 
 as deduction items on the asset side of the balance sheet 
 immediately following Profit and Loss — Balance, from which 
 they should be deducted, the difference being extended as 
 the net corporate deficit. (See account WB 32.) 
 
 ADDITIONAL COPIES of this publication 
 J^ may be procured from the Superintend- 
 ent OP Documents, Government Printing 
 Office, Washington, D. C, at 5 cents per copy 
 
Cornell University Library 
 HE605 .U55 1912 
 
 Form of general balance sheet statement 
 
 olin 
 
 3 1924 032 476 495