G05 
 
CORNELL 
 
 UNIVERSITY 
 
 LIBRARY 
 
 BUSINESS 
 
CLASSIFICATION OF 
 
 INCOME AND PROFIT AND LOSS 
 
 ACCOUNTS 
 
 FOR 
 
 CARRIERS BY WATER 
 
 N ( 5 , AS PRESCRIBED BY THE 
 
 JNTERSTATE COMMERCE COMMISSION 
 
 IN ACCORDANCE WITH SECTION 20 OF THE 
 ACT TO REGULATE COMMERCE 
 
 HE 605.U5 O 5T91 U 3 iVerS ' ,yUbrary 
 
 Classification of income and profit and 
 
 3 1924 019 378 052 
 TTXK5T KSCfUis — 
 Effective on July 1, 1913 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 
 1913 
 
 _> 
 
TiuC'f'-.es' 
 WE 
 Go 5 
 
 THE INTERSTATE COMMERCE COMMISSION. 
 
 Edgar E. Clark, of Iowa. 
 Judson C. Clements, of Georgia. 
 Charles A. Prouty, of Vermont. 
 James S. Harlan, of Illinois. 
 Charles C. McChord, of Kentucky. 
 Balthasar H. Meyer, of Wisconsin. 
 John H. Marble, of California. 
 
 George B. McGinty, Secretary. 
 (2) 
 
 5 2.230/5 
 170 
 
At a General Session of the INTERSTATE COMMERCE 
 COMMISSION, held at its office in Washington, D. C, 
 on the 17th day of June, 1913. 
 
 The subject of Uniform Income and Profit and Loss accounts for 
 the use of carriers by water making reports to the Commission, and of 
 the Ledger Accounts immediately pertaining thereto, being under 
 consideration, the following order was entered: 
 
 It is ordered, That the Classification of Income and Profit and Loss 
 Accounts, including the text, general instructions, and index therein, 
 embodied in printed form, to be hereafter known as Classification of 
 Income and Profit and Loss Accounts for Carriers by Water, First 
 Issue, 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, be filed in the office of the 
 Division of Carriers' Accounts; and that each of said copies so authen- 
 ticated and filed shall be deemed an original record thereof. 
 
 It is further ordered, That the said Classification of Income and 
 Profit and Loss Accounts, and the text pertaining thereto, be, and it 
 is hereby, prescribed for the use of carriers by water having annual 
 operating revenues exceeding $50,000, subject to the provisions 
 of the amended act to regulate commerce in the keeping and record- 
 ing of all transactions reflected in the said Income and Profit and 
 Loss Accounts; that each and every such carrier and each and 
 every receiver or operating trustee of any such carrier be required 
 to keep all income and profit and loss accounts in conformity there- 
 with; and that a copy of the said Classification of Income and Profit 
 and Loss Accounts for Carriers by Water, First Issue, be sent 
 to each and every such carrier and to each and every receiver or 
 operating trustee of any such carrier: Provided, however, That noth- 
 ing in this order shall be construed as depriving a carrier of the right 
 to make whatever analysis of income and profit and loss items it may 
 deem proper for the information of stockholders or of officials who 
 have the management of its property. 
 
 It is further ordered, That July 1, 1913, be, and is hereby, fixed 
 as the date on which the said Classification of Income and Profit and 
 Loss Accounts for Carriers by Water, First Issue, shall become 
 effective. 
 
 By the Commission. 
 
 George B. McGinty, Secretary. 
 (3) 
 
Cornell University 
 Library 
 
 The original of this book is in 
 the Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924019378052 
 
GENERAL INSTRUCTIONS. 
 
 1. Income Accounts Defined. — Income Accounts are those ac- 
 counts designed to show the total amount of money that a company 
 receives or becomes entitled to receive from its transportation and 
 other operations during a given fiscal period, the return accrued dur- 
 ing the period upon investments, and the disbursements and obliga- 
 tions incurred that affect the amounts so received or accrued. The 
 net balance of Income (or loss) should be carried to the Profit and 
 Loss Account. 
 
 2. Profit and Loss Accounts Defined. — The Profit and Loss 
 Accounts are those accounts designed to show the changes in the cor- 
 porate surplus or deficit during a given fiscal period as affected by the 
 operations and business transactions during that period as well as 
 changes effected by appropriations of surplus made at the option of 
 the company; by accounting adjustments with regard to matters not 
 properly attributable to the period; or by miscellaneous gains or 
 losses not provided for elsewhere and to show also the free surplus of 
 the carrier at the date of the balance sheet. The Profit and Loss 
 Account balance should be shown in the General Balance Sheet 
 Statement under account WP> 32, "Balance," or account WB 57, 
 "Balance." 
 
 3. General Ledger Accounts. — The accounts in the general 
 ledger pertaining to Income or Profit and Loss should be kept in 
 such form that the balances drawn therefrom may be readily classi- 
 fied in the accounts prescribed in this classification; and the titles of 
 such general ledger accounts should give reference by number or title 
 to the accounts prescribed herein in which they are included. 
 
 4. Income Account on Basis of Accruals. — The text in general 
 provides that items affecting the Income Account shall be stated 
 upon the basis of accruals. It will be noted, however, that exceptions 
 have been made in a few instances in which it has seemed that to 
 require the accrual basis would lead to erroneous results, or involve 
 unwarranted refinements in accounting. 
 
 5. Sinking Fund Accruals. — A separate account (WI 10) has 
 been provided in the Income Account for the purpose of showing 
 
 (5) 
 
income from securities and other assets held in sinking and other 
 reserve funds. Entries are to be made in this account showing the 
 amount of income accrued on cash, securities (except those issued or 
 assumed by the accounting company), and other assets held in such 
 funds. No entry is to be made in this account, or in accounts repre- 
 senting interest on funded debt or dividends on stock, for interest 
 or dividends on such securities as are issued or assumed by the 
 accounting company and held by or for it. 
 
 Accounts are provided in both the Income Account and the Profit 
 and Loss Account for appropriations of moneys and other assets 
 to sinking funds. The amounts of such appropriations should be 
 credited to balance-sheet account WB 56, "Reserves from Income 
 or Surplus." 
 
 6. Auxiliary Operations. — Carriers by water operating facilities- 
 or rendering services other than those in connection with transporta- 
 tion by water or incidental thereto should treat such operations as 
 auxiliary operations when the revenues and expenses thereof, if 
 included in the carrier's accounts dealing with transportation by 
 water, would impair the significance of statistics prepared from such 
 accounts. Carriers should keep separate revenue and expense ac- 
 counts for each operation conducted and include the aggregate of 
 the revenue and the aggregate of the expenses of auxiliary opera- 
 tions in the respective accounts provided for them in the Income 
 Statement. 
 
 The following are some of the more important auxiliary opera- 
 tions conducted by carriers by water: 
 Amusement Parks and Resorts. 
 Cab and Omnibus Service. 
 Hotels and Restaurants. 
 
 7. Cancellation of Conflicting Previous Instructions. — The 
 rules provided in this Classification of Income and Profit and Loss 
 Accounts supersede any conflicting instructions in classifications and 
 accounting forms previously issued for carriers by water.. 
 
CARRIERS BY WATER. 
 
 Income Accounts. 
 
 I. CREDITS: ° p age . 
 
 WI 1. Water Line Operations — Revenues 9 
 
 WI 2. Auxiliary Operations — Revenues.. 9 
 
 WI 3. Income from Lease of Line 9 
 
 WI 4. Miscellaneous Rent Income 9 
 
 WI 5. Net Income from Miscellaneous Physical Property 10 
 
 WI 6. Separately Operated Properties — Profit 10 
 
 WI 7. Dividend Income 10 
 
 WI 8. Income from Funded Securities ■ 10 
 
 WI 9. Income from Unfunded Securities and Accounts 11 
 
 WI 10. Income from Sinking and Other Reserve Funds 11 
 
 WI 11. Release of Premiums on Funded Debt 11 
 
 WI 12. Contributions from Other Companies 11 
 
 WI 13. Miscellaneous Income. 12 
 
 Debit Balance (for the fiscal period) carried to Profit and Loss. 
 II. DEBITS: 
 
 WI 14. Water Line Operations — Expenses 12 
 
 WI 15. Auxiliary Operations — Expenses 12 
 
 WI 16. Water Line Tax Accruals 12 
 
 WI 17. Rent of Leased Lines 13 
 
 WI 18. Miscellaneous Rents 13 
 
 WI 19. Miscellaneous Tax Accruals 13 
 
 WI 20. Net Loss on Miscellaneous Physical Property 14 
 
 WI 21. Separately Operated Properties — Loss 14 
 
 WI22. Interest on Funded Debt 14 
 
 WI 23. Interest on Unfunded Debt 14 
 
 WI 24. Amortization of Discount on Funded Debt 15 
 
 WI 25. Income Transferred to Other Companies 15 
 
 WI 26. Maintenance of Organization — Lessor Companies 15 
 
 WI 27. Miscellaneous Fixed Charges 15 
 
 WI 28. Appropriations of Income to Sinking and Other Reserve Funds. . 15 
 
 WI 29. Dividend Appropriations of Income 16 
 
 WI 30. Appropriations of Income for Real Property and Equipment 16 
 
 WI 31. Stock Discount Extinguished through Income 16 
 
 WI 32. Miscellaneous Appropriations of Income 16 
 
 Credit Balance (for the fiscal period) carried to Profit and Loss. 
 
 (7) 
 
TEXT PERTAINING TO INCOME ACCOUNTS FOR CARRIERS 
 
 BY WATER. 
 
 I. CREDITS. 
 WI 1. Water Line Operations — Revenues. 
 
 This account should include the total operating revenues as shown in the 
 accounts provided in the Classification of Operating Revenues for Carriers 
 by Water. 
 WI 2. Auxiliary Operations — Revenues. 
 
 This account should include revenues derived from auxiliary operations. 
 
 WI 3. Income prom Lease of Line. 
 
 This account should include the amount accrued as rent of line (including 
 floating equipment and other water-line property covered by the contract) 
 owned or controlled by the accounting company and held by another com- 
 pany under lease or other agreement granting exclusive use and control for 
 operating purposes. 
 
 This account should include the entire amount of rent receivable by 
 the lessor according to the terms of lease or other agreement, whether it 
 is paid to the lessor in cash or is disbursed by the lessee for the account of 
 the lessor as interest on funded debt, guaranteed dividends on stock, or 
 otherwise. 
 
 Note A. — If floating equipment is included in the lease of line, the revenue from the 
 charter of such equipment should be credited by the lessor to this account, except when 
 the charter is for a period less than one year, in which case the revenue from the charter 
 should be credited to operating revenue account WR 11, "Charters Involving Rent 
 Exclusively." 
 
 Note B.— When taxes on leased property are assumed by the lessor, the accruals of 
 Buch taxes should be included in the lessor's account WI 16, " Water Line Tax Accruals." 
 
 Note C. — If property, the rent of which is chargeable to account WI 17, "Rent of 
 Leased Lines," is sublet by the accounting company, the rent receivable therefor should 
 be credited to this account. 
 
 Note D.— 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 should be charged to this account by the lessor. 
 
 WI .4. Miscellaneous Rent Income. 
 
 This account should include such rents of real property carried in the 
 real property and equipment accounts as are not provided for in account 
 WI 3, "Income from Lease of Line." To this account should be charged 
 the cost of maintenance of the property rented, also 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 the expenses of the real property leased can not be separated from the 
 expenses of real property used in the company's operations, the rents should be credited 
 to revenue account WR 9, "Rents of Buildings and Other Property." 
 
 91538°— 13 2 (9) 
 
10 
 
 I. CREDITS— Continued. 
 WI 4. Miscellaneous Rent Income — Continued. 
 
 Note B.— Ii a service (other than transportation service) ia performed by the ac- 
 counting company in connection with real property, the income should not be included 
 in this account, but the service should be treated as an auxiliary operation. 
 
 Note C— If property, the rent of which is chargeable to account WI 18, " Miscellaneous 
 Rents," is sublet by the accounting company, the rent receivable therefor should be 
 credited to this account. 
 
 Note D.— Taxes on real property, the rent of which is properly creditable to this 
 account, should be charged to account WI 16, "Water Line Tax Accruals." 
 
 Note E.— The rent of property carried in balance-sheet account WB 6 (a), "Miscel- 
 laneous Investments— Physical Property," should not be included in this account, but 
 in account WI 5, "Net Income from Miscellaneous Physical Property," or WI 20, "Net 
 Loss on Miscellaneous Physical Property," as may be appropriate. 
 WI 5. Net Income from Miscellaneous Physical Property. 
 
 This account should include the net credit balance of the revenues or 
 income from, and" the expenses (excluding taxes) of, physical property 
 carried in balance-sheet account WB 6 (a), "Miscellaneous Investments — 
 Physical Property." 
 
 Note.— If the net balance is a debit, it should be shown under account WI 20, "Net 
 Loss on Miscellaneous Physical Property." 
 
 WI 6. Separately Operated Properties — Profit. 
 
 This account should include amounts receivable under the terms of agree- 
 ments or contracts whereby the surplus resulting from the operation of prop- 
 erties of other companies having a separate corporate existence and operated 
 separately is to be paid in whole or in part to the accounting company. 
 
 In determining the "amount receivable by the accounting company, con- 
 sideration should be given not only to the operating revenues and items of 
 income, but also to operating expenses and income deductions which affect 
 that amount. 
 
 Note A.— The amount payable by the operating company should be charged by it 
 to account WI 25, "Income Transferred to Other Companies." 
 
 Note B. — Dividends or other returns upon securities issued by separately operated 
 companies and held or controlled by the accounting company should be included in 
 account WI 7, "Dividend Income," WI 8, "Income from Funded Securities," or WI 
 9, "Income from Unfunded Securities and Accounts," as may be appropriate. 
 
 WI 7. Dividend Income. 
 
 This account should include dividends declared on stocks of other com- 
 panies, such securities being owned by the accounting company (held in its 
 treasury or deposited in trust), or being stocks controlled through lease or 
 otherwise, the income from which is the property of the accounting com- 
 pany. Accruals of guaranteed dividends may be included in this account 
 if their payment is reasonably assured. 
 
 Note A.— This account should not include credits (or dividends on stocks issued or 
 assumed by the accounting company and owned by :t, whether held in its treasury, in 
 special deposits, or in sinking or other reserve funds , or pledged as collateral. 
 
 Note B.— Dividends on stocks o- other companies held m sinking or other reserve 
 'unds should be credited to account W . '0, "Income from Sinking and Other Reserve 
 Funds." 
 WI 8. Income from Funded Securities. 
 
 This account should include interest on funded securities and debenture 
 stock of other companies, such securities being owned by the accounting 
 company (held in its treasury or deposited in trust) or being controlled 
 through lease or otherwise the income from which is the property of the 
 accounting company. Interest accrued should not be credited unless its 
 payment is reasonably assured by past experience, guaranty, anticipated 
 provision, or otherwise. In other cases the credit to this account should 
 be based upon the interest actually collected. 
 
11 
 
 I. CREDITS— Continued. 
 WI 8. Income prom Funded Securities — Continued. 
 
 At the option of the accounting company there may be included 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 com- 
 panies owned. 
 
 Note A. — The term 'unded securities, as here used, means all unmatured bonds, notes. 
 and other evidences of indebtedness (except open accounts for advances) which, by the 
 terms of the creation ol the debt, do not mature until more than one year after the date 
 of such creation. 
 
 Note B. — This account should not include interest on unded securities issued or 
 assumed by the accounting company and owned by it, whether held in its treasury, in 
 special deposits, or in sinking or other reserve lunds, or pledged as collateral. 
 
 Note C. — Interest on funded securities of other companies held in sinking or other 
 reserve funds should be included in account WI 10, "Income lrom Sinking and Other 
 Reserve Funds." 
 
 Note D. — Interest accruing on bonds, notes, and other evidences of Indebtedness 
 after maturity should be included in account W 19," Income from Unfunded Securities 
 and Accounts." 
 
 WI 9. Income from Unfunded Securities and Accounts. 
 
 This account should include interest on unfunded and matured funded 
 securities of other companies, interest on bank balances and open accounts, 
 and other analogous items, including discount on short-term notes. 
 
 Note A. — The term unfunded securities, as here used, means notes and other evidences 
 ci indebtedness payable on demand or having dates of maturity one year or less from the 
 date of issue. 
 
 Note B. — Interest on assets held in sinking and other reserve lunds should be included 
 in account WI 10, "Income from Sinking and Other Reserve Funds." 
 
 Note C. — Discounts on bills for materials and suppliespurchased should not be credited 
 to this account, but should be credited to the accounts which were charged by the original 
 invoices. 
 
 WHO. Income from Sinking and Other Reserve Funds. 
 
 This account should 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 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 com- 
 panies held in sinking or other reserve funds. 
 
 Note. — Credits to fund reserve accounts representing income or reserve funds should 
 be concurrently charged to income account WI 28, " Appropriations of Income to Sink- 
 ng and Other Reserve Funds." 
 
 WI 11. Release of Premiums on Funded Debt. 
 
 This account should include during each fiscal period such proportion of 
 the premiums on outstanding funded debt as may be applicable to that period. 
 This proportion should be determined according to the rule provided in 
 balance-sheet account WB 49 "Unextinguished Premium on Debt." 
 
 Note. — The amounts credited to this account should be concurrently charged to the 
 discount and premium accounts in which the respective premiums are carried. 
 
 WI 12. Contributions from Other Companies. 
 
 This account should include amounts received from other companies or 
 individuals, under the terms of agreements or contracts, for the whole or a 
 part of the net deficit of the accounting company, when no provision is made 
 for subsequent reimbursement. 
 
12 
 
 I. CREDITS— Continued. 
 
 WI 12. Contributions from Other Companies — Continued. 
 
 In determining the amount receivable by the accounting company, con- 
 sideration should be given not only to the operating revenues and items of 
 income, but also to operating expenses and income deductions which affect 
 that amount. 
 
 Note A.— The amount payable should be charged by the contributing company to 
 account WI 21, "Separately Operated Properties — Loss." 
 
 Note B. — This account should not include advances. (See balance-sheet accounts 
 WB 37, "Obligations (or Long-Term Advances Received," and WB 45, "Working 
 Advances Owed to Other Companies.") 
 
 WI 13. Miscellaneous Income. 
 
 This account should include all items, not prcdded for elsewhere, properly 
 creditable to Income account during the fiscal period. 
 
 II. DEBITS. 
 
 WI 14. Water Line Operations— Expenses. 
 
 This account should include the total operating expenses as Bhown in the 
 accounts provided in the Classification of Operating Expenses for Carriers by 
 Water. 
 
 WI 15. Auxiliary Operations — Expenses. 
 
 This account should include the total expenses of conducting auxiliary 
 operations. 
 
 WI 16. Water Line Tax Accruals. 
 
 This account should include accruals for taxes of all kinds, relating to 
 water-line property, operations, and privileges (including that devoted to 
 auxiliary operations) whether the assessment is based on the valuation of 
 the property, on the amount of stocks and bonds issued or outstanding with 
 respect to such property, on the gross or net earnings, on dividends, on the 
 number of passengers carried, on the amount of freight transported, or 
 otherwise. 
 
 This account should be charged each month with the amount of taxes 
 accruing during the month. When it is not possible to determine the actual 
 accruals, the amount of the annual taxes should be estimated and one-twelfth 
 of the estimated amount should be charged to this account monthly. The 
 monthly charges should be adjusted from time to time during the year as the 
 actual tax levies become known, so as to include as nearly as practicable 
 the total amount of the taxes in the accounts of the fiscal year to which they 
 apply. 
 
 The taxes on leased property should 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 chargeable 
 to the other party to the lease should be charged direct to the party assuming the expense 
 and not included in the income account of the party first making payment. 
 
 Note B. — Taxes on securities owned, on income from securities owned, or on physical 
 property other than that carried in the real property and equipment accounts should 
 be included in account WI 19, "Miscellaneous Tax Accruals." 
 
 Note C— If property other than that devoted to the service of transportation by 
 water or auxiliary operations is so intimately connected with property devgted to such 
 operations that the taxes thereon can not be separately ascertained, such taxes may be 
 included in this account' also when it is impossible to ascertain from the taxing 
 authorities the distribution oi taxes between (1) property and privileges used in 
 water-line and auxiliary operations, and (2) other property, operations, and privileges, 
 the taxes on the latter may be included in this account. When it is possible to 
 ascertain the taxes on other property, operations and privileges, they should be 
 charged to account WI 19, "Miscellaneous Tax Accruals." 
 
13 
 
 II. DEBITS— Continued. 
 Wl 16. Water Line Tax Accruals — Continued. 
 
 Note D.— Special assessments for street and other improvements, and special benefit 
 taxes, such as water taxes, drainage taxes, and the like should be included In operating 
 expense accounts, or real property and equipment accounts as may be appropriate. 
 
 Note E.— Taxes assessed separately on real estate acquired for additions and better- 
 ments should becharged to the appropriate real property and equipment accounts until 
 the completion or coming into service of the property. 
 
 WI 17. Rent of Leased Lines. 
 
 This account should include amounts accrued as rent for lines (including 
 the floating equipment and other property covered by the contracts) of 
 other companies, held under lease or other agreement, by the terms of which 
 exclusive use and control for operating purposes are secured by the account- 
 ing company. 
 
 This account should include the entire amount of rent (except taxes) 
 payable by the lessee according to the terms of lease or other agreement, 
 whether it is paid to the lessor in cash or is disbursed by the lessee for the 
 account of the lessor as interest on funded debt, guaranteed dividends on 
 stock, or otherwise. 
 
 Note A. — The charter of equipment included in the lease of line should be charged to 
 this account except when the charter is for a period less than one year, in which case the 
 amount'paid for charter of equipment should be charged to operating expense account 
 WE 56, " Charters Involving Rent Exclusively." 
 
 Note B. — When taxes on leased property are assumed by the lessor, the accruals of 
 such taxes should be included in the lessor's account WI 16, " Water Line Tax Accruals." 
 
 Note C. — If property, the rent of which is charged to this account, is sublet by the 
 accounting company to others, the rent from the sublease should be credited to account 
 WI 3, "Income from Lease of Line." 
 
 WI 18. Miscellaneous Rents. 
 
 This account should include rents accrued on property held by the ac- 
 counting company, under lease or other agreement, and not properly charge- 
 able to account WI 17, "Rent of Leased Lines." 
 
 Note A. — This account should not include such rents as are provided for in the Clas- 
 sification of Operating Expenses for Carriers by Water or rent on property devoted 
 to auxiliary operations. 
 
 Note B. — If real property, the rent of which is chargeable to this account, is sublet 
 by the accounting company to others, the rent from the sublease should be credited to 
 account WI 4, "Miscellaneous Rent Income." 
 
 Note C. — If the property rented is used in the accounting company's operations and 
 is maintained by the lessor, such proportion of the rent payable as equals the cost (esti- 
 mated, if not known) of maintaining the rented property should be charged by the 
 accounting carrier to the appropriate operating expense account. 
 
 WI 19. Miscellaneous Tax Accruals. 
 
 This account should include all accruals for taxes other than those pro- 
 vided for in account WI 16, "Water Line Tax Accruals," such as taxes on 
 securities owned, taxes on income from securities owned, taxes on physical 
 property other than that carried in the real property and equipment accounts 
 when separately assessed or when definitely separable from taxes assigned 
 to water transportation operations, and analogous items. 
 
 Note. — If property other than that devoted to the service of transportation by water 
 is so intimately connected with property devoted to such service that the taxes thereon 
 can not be separately ascertained, such taxes may be included in account WI 16, " Water 
 Line Tax Accruals." 
 
14 
 
 n. DEBITS— Continued. 
 WI 20. Net Loss on Miscellaneous Physical Property. 
 
 This account should include the net debit balance of the revenues or 
 income from, and the expenses (excluding taxes) of, physical property car- 
 ried in balance-sheet account WB 6 (a), "Miscellaneous Investments — 
 Physical Property." 
 
 Note.— If the net balance is a credit it should be shown under account WI 5, "Net 
 Income from Miscellaneous Physical Property." 
 
 WI 21. Separately Operated Properties — Loss. 
 
 This account should 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 existence and 
 operated separately is to be paid, in whole or in part, by the accounting 
 company! 
 
 In determining the amount payable by the accounting company, con- 
 sideration should 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 should be credited by it 
 to account WI 12, "Contributions from Other Companies." 
 
 Note B. — This account should not include the results from operations of property and 
 facilities owned by the accounting company. 
 
 Note C. — Dividends or other returns upon securities issued by separately operated 
 companies and held or controlled by the accounting company should not be included 
 in this account to offset a deficit payable. Such returns should be included in account 
 WI 7, "Dividend Income"; WI 8, "Income from Funded Securities"; or WI 9, "Income 
 from Unfunded Securities and Accounts," as may be appropriate. 
 
 WI 22. Interest on Funded Debt. 
 
 This account should include the current accruals of interest on all classes of 
 funded debt defined in balance-sheet account WB 36, "Funded Debt," 
 issued or assumed by the accounting company, and also the interest on re- 
 ceivers' certificates issued for a term of more than one year, the interest 
 accrued on long-term advances, and the interest accrued on debenture stock. 
 
 Note A. — This account should not include charges for interest on funded debt obliga- 
 tions issued or assumed by the accounting company and owned by it, whether held in its 
 treasury, in special deposits, or in sinking or other reserve funds, or pledged as collateral. 
 (See account WI 28, " Appropriations of Income to Sinking and Other Reserve Funds.") 
 
 Note B.— When funded debt is incurred for additions and betterments purposes, the 
 accruals of interest on such funded debt to the date of completion or coming into service 
 of the property so acquired should be included in real property and equipment account 
 WP 11, "Miscellaneous." 
 
 Note C— Interest accruing on bonds and other securities after maturity should not 
 be included in this account, but in account WI 23 "Interest on Unfunded Debt." 
 
 WI 23. Interest on Unfunded Debt. 
 
 This account should include interest accrued on unfunded debt, such as 
 short-term notes payable on demand or having dates of maturity one year 
 or less from date of issue, interest on matured bonds and other securities and 
 open accounts, discount on short-term loans, and other analogous items. 
 
 Note. — When short-term notes or other evidences of unfunded indebtedness are issued 
 for additions and betterments purposes the accrual of interest to the date of completion 
 or coming into service of the property should be included in real property and equipment 
 account WP 11, " Miscellaneous." 
 
15 
 
 II. DEBITS— Continued. 
 WI 24. Amortization of Discount on Funded Debt. 
 
 This account should be charged during each fiscal period with the pro- 
 portion of the unextinguished discount and expense on funded debt obliga- 
 tions applicable to that period. This proportion should be determined 
 according to a rule, the uniform application of which throughout 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 exceed the proportion 
 applicable to that period, and a charge should be made for each period so long 
 as any portion of the discount and expense remains unextinguished. 
 
 Note A . — In order that the discount and expense on funded debt may be extinguished 
 sooner, the company may, at its option, charge to account WPL 12, "Debt Discount 
 Extinguished through Surplus," all or any portion of the discount and expense on 
 funded debt remaining at any time unextinguished. 
 
 Note B. — The amounts charged to this account should be concurrently credited to the 
 discount and premium accounts in which the respective discounts are carried. (See 
 balance-sheet accounts WB 24, "Unamortized Debt Discount and Expense," and WB 
 49, "Unextinguished Premium on Debt.") 
 
 WI 25. Income Transferred to Other Companies. 
 
 This account should include the whole or any portion of the surplus from 
 the operations of properties by the accounting compsny payable to another 
 company without provision for reimbursement under the terms of agreements 
 or contracts. 
 
 In determining the amount payable by the accounting company, consid- 
 eration should 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 should be credited by it to 
 account WI 21, "Separately Operated Properties — Profit." 
 
 Note B. — Dividends or other payments upon securities issued or assumed by the 
 accounting company should not be included in this account. 
 
 WI 26. Maintenance of Organization — Lessor Companies. 
 
 This account should include the cost of maintaining the organization of 
 lessor companies such as salaries of officers, pay of clerks and attendants, 
 office expenses, law expenses, cost of stationery and printing, and cost of 
 supplies. 
 
 Note.— This account should be used only by companies owning or controlling water 
 transportation lines and leasing their entire lines to others and conducting no water 
 transportation operations. 
 
 WI 27. Miscellaneous Fixed Charges. 
 
 This account should include all items in the nature of fixed charges, not 
 provided for elsewhere, properly chargeable to Income for the fiscal period. 
 
 WI 28. Appropriations of Income to Sinking and Other Eeserve Funds. 
 This account should include amounts definitely appropriated from Income 
 and applied to sinking and other reserve funds; allotments of income or pay- 
 ments of definite amounts from income into sinking and other reserve funds 
 under the terms of mortgages, deeds of trust, or other contracts that provide 
 for such allotments or payments; and other accretions from income to such 
 funds representing interest or other returns on the assets thereof. 
 
 Note a. — The amounts charged to this account should be concurrently credited to 
 appropriate balance-sheet accounts. 
 Note B. — Similar appropriations made from surplus, should be charged to account 
 WPL 8, " Appropriations of Surplus to Sinking and Other Reserve Funds." , 
 
16 
 
 II. DEBITS— Continued. 
 WI 29. Dividend Appropriations op Income. 
 
 This account should include amounts definitely declared payable from the 
 income of a 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 
 WB 33 "Capital Stock"). If a dividend is not payable in cash or its equiva- 
 lent the consideration should be described in the entry with sufficient par- 
 ticularity to identify it. 
 
 This account should be subdivided so as to show separately the dividends 
 on the various classes of capital stock. 
 
 Note A.— Interest accrued on debenture stock should be charged to account WI 22, 
 "Interest on Funded Debt." 
 
 Note B. — This account should not include charges for dividends on capital stock 
 issued or assumed by the accounting company and owned by it, whether held in its 
 treasury, in special deposits, or in sinking or other reserve funds, or pledged as collateral. 
 (See account WI 28, " Appropriations of Income to Sinking and Other Reserve Funds.") 
 
 Note G. — Similar appropriations made from surplus should be charged to account 
 WPL 9, "Dividend Appropriations of -Surplus." 
 
 WI 30. Appropriations op Income for Real Property and Equipment. 
 
 This account should include amounts appropriated from income for con- 
 struction, and for additions to and betterments of property carried in the 
 real property and equipment accounts. 
 
 Records of the accounting company should be so kept that the amounts 
 charged to this account for any fiscal period may be distinguished as, (a) 
 amounts expended during preceding fiscal periods, (6) amounts expended 
 during the current fiscal period, and (c) amounts held in reserve. 
 
 Note A. — Similar appropriations made from surplus should be charged to account 
 WPL 10, "Appropriations of Surplus for Real Property and Equipment." 
 
 Note B. — The amounts charged to this account should be concurrently credited to 
 balance-sheet account WB 54, "Surplus Invested in Property since December 31,1912," 
 or WB 56, "Reserves from Income or Surplus," as may be appropriate. 
 
 WI 31. Stock Discount Extinguished through Income. 
 
 This account should include amounts definitely appropriated from Income 
 to reduce or extinguish the discount on capital stock issued by the accounting 
 company. (See balance-sheet account WB 23, ' ' Unextinguished Discount on 
 Capital Stock.") 
 
 Note — Si m ilar appropriations made from surplus should be charged to account 
 WPL 11, "Stock Discount Extinguished through Surplus." 
 
 WI 32. Miscellaneous Appropriations op Income. 
 
 This account should include amounts definitely appropriated from income 
 except as provided in account WI 28, "Appropriations of Income to Sinking 
 and Other Reserve Funds," to provide a reserve for doubtful accounts and 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 improvements of prop- 
 erty carried in the real property and equipment accounts; also other amounts 
 appropriated from income and not provided for elsewhere. 
 
 Note.— Similar appropriations made from surplus should be charged to account 
 WPL 13, "Miscellaneous Appropriations of Surplus." 
 
CARRIERS BY WATER. 
 
 Peofit and Loss Accounts. 
 
 I. OEEDITS: . Page. 
 
 WPL 1. Credit Balance (at beginning of fiscal period) 19 
 
 WPL 2. Credit Balance Transferred from Income Account 19 
 
 WPL 3. Real Property and Equipment Credits 19 
 
 WPL 4. Delayed Income Credits : 19 
 
 WPL 5. Miscellaneous Credits 19 
 
 II. DEBITS: 
 
 WPL 6. Debit Balance (at beginning of fiscal period) 20 
 
 WPL 7. Debit Balance Transferred from Income Account 20 
 
 WPL 8. Appropriations of Surplus to Sinking and Other Reserve Funds. 20 
 
 WPL 9. Dividend Appropriations of Surplus 20 
 
 WPL 10. Appropriations of Surplus for Real Property and Equipment. 20 
 
 WPL 11. Stock Discount Extinguished through Surplus 21 
 
 WPL 12. Debt Discount Extinguished through Surplus 21 
 
 WPL 13. Miscellaneous Appropriations of Surplus 21 
 
 WPL 14. Real Property and Equipment Debits 21 
 
 WPL 15. Delayed Income Debits 21 
 
 WPL 16. Miscellaneous Debits '. 22 
 
 '(17) 
 
TEXT PERTAINING TO PEOFIT AND LOSS ACCOUNTS 
 FOR CARRIERS BY WATER. 
 
 . CREDITS: 
 WPL 1. Credit Balance (at beginning of fiscal period). 
 
 This account should include the net credit balance in the Profit and Loss 
 Account at the beginning of the fiscal period. 
 WPL 2. Credit Balance Transferred from Income Account. 
 
 This account should include the net credit balance for the fiscal period 
 brought forward from the Income Account. 
 WPL 3. Real Property and Equipment Credits. 
 
 This account should include the excess amount received from the sale 
 of property carried in the real property and equipment accounts over the 
 book value of the assets shown therefor. This account should include also 
 such credits created by adjustments of real property and equipment accounts 
 as may have been authorized by the Interstate Commerce Commission. 
 
 Note.— Adjustments of real property and equipment accounts should be made in con- 
 formity with the principles embodied in the Classification" of Expenditures for Real 
 Property and Equipment of Carriers by "Water. If the accounts prior to January 1, 
 1913 (the effective date of that classification), have been incorrectly stated, and the 
 carrier desires to so adjust that the account "Property Investment " will more accu- 
 rately reflect the facts, application should be made to the Commission for permission to 
 make such adjustments through Profit and Loss. 
 
 WPL 4. Delayed Income Credits. 
 
 This account should include credits relating to operating revenues, operat- 
 ing expenses, and other income items of previous fiscal periods, when such 
 items are greatly delayed and relatively large. 
 
 All entries in this account should be made in such detail as will indicate 
 the operating revenue, operating expense, or other income accounts to 
 which they relate. 
 
 Note. — As a rule, items affecting income should be included in the appropriate 
 accounts in the fiscal period in which they accrue. Only those items which are greatly 
 delayed and the amounts of which are relatively so large as to impair fhe figures for the 
 current fiscal period should be included in this account. Other lap-over items should 
 be credited to the appropriate operating revenue, operating expense, or other income 
 accounts in the current fiscal period. 
 
 WPL 5. Miscellaneous Credits. 
 
 This account should include amounts (not provided for elsewhere) trans- 
 ferred from other accounts to Profit and Loss, and amounts representing 
 increases of resources not properly assignable to the income of the fiscal period 
 for which the accounts are stated. Among the items which should be included 
 in this account 'are: 
 
 Adjustments or cancellations of old balanee-sheet accounts other than real 
 property and equipment accounts. 
 
 Profit derived from the sale of investment securities. 
 
 Profit derived from the sale of property carried in balance-sheet aecount 
 WB 6 (a), "Miscellaneous Investments — Physical Property." 
 
 (19) 
 
20 
 
 I. CREDITS— Continued. 
 
 WPL 5. Miscellaneous Credits — Continued. 
 
 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 retirement. 
 
 TJnreleased premiums on funded debt retired before maturity. 
 
 II. DEBITS: 
 
 WPL 6. Debit Balance (at beginning of fiscal period). 
 
 This account should include the debit balance in the Profit and Loss 
 Account at the beginning of the fiscal period. 
 WPL 7. Debit Balance Transferred from Income Account. 
 
 This account should include the net debit balance for the fiscal period 
 brought forward from the Income Account. 
 WPL 8. Appropriations of Surplus to Sinking and Other Reserve Funds. 
 This account should include amounts definitely appropriated from surplus 
 and applied to sinking and ciher reserve funds; allotments of surplus or 
 payments of definite amounts from surplus into sinking and other reserve 
 funds under the terms of mortgages, deeds of trust, or other contracts which 
 provide for such allotments or payments. 
 
 Note A.— Similar appropriations made from income should be charged to account 
 WI 28, "Appropriations of Income to Sinking and Other Reserve Funds." 
 
 Note B. — The amounts charged to this account should be concurrently credited to 
 appropriate balance-sheet accounts. 
 
 WPL 9. Dividend Appropriations of Surplus. 
 
 This account should 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 WB 33 "Capital 
 Stock.") 
 
 If a dividend is not payable in cash or its equivalent the consideration 
 should be described in the entry with sufficient particularity to identify it. 
 
 This account should be subdivided so as to show separately the dividends 
 on the various classes of capital stock. 
 
 Note A. — This account should not include charges for dividends on capital stock 
 issued or assumed by the accounting company and owned by it, whether held in its 
 treasury, in special deposits, or sinking and other reserve funds, or pledged as collateral. 
 (See account WPL 8, "Appropriations of Surplus to Sinking and Other Reserve Funds.") 
 
 Note B. — Similar appropriations made from income should be charged to account 
 WI 29, "Dividend Appropriations of Income ." 
 
 WPL 10. Appropriations of Surplus for Real Property and Equd?ment. 
 
 This account should include amounts definitely appropriated from surplus 
 for construction and for additions to and betterments of property the cost 
 of which is includible in the real property and equipment accounts. 
 
 These amounts should be subdivided so as to show (a) amounts expended 
 during preceding fiscal periods, (b) amounts expended during the current 
 fiscal period, and (c) amounts held in reserve. 
 
 Note A.— Similar appropriations made from income 'should be charged to account 
 WI 30, "Appropriations of Income for Real Property and Equipment." 
 
 Note B.— The amounts charged t this account should be concurrently credited to 
 •balance-sheet account WB 54, "Surplus Invested in Property since December 31, 1912," 
 or WB 56, 'Reserves from Income or Surplus," as may be appropriate. 
 
21 
 
 II. DEBITS— Continued. 
 WPL 11. Stock Discount Extinguished through Surplus. 
 
 This account should include amounts definitely appropriated from surplus 
 to reduce or extinguish the amount of discount on capital stock issued by 
 the accounting company. (See balance-sheet account WB23, "Unextin- 
 guished Discount on Capital Stock.") 
 
 Note.— Similar appropriations made from income should be charged to account WI 31, 
 "Stock Discount Extinguished through Income." 
 
 WPL 12. Debt Discount Extinguished through Surplus. 
 
 This account should include appropriations of surplus made, at the option 
 of the accounting company, to reduce or extinguish the discount and expense 
 on funded debt. (See account WI 24, "Amortization of Discount on Funded 
 Debt," and balance-sheet account WB 24, "Unamortized Debt Discount 
 and Expense.") 
 
 WPL 13. Miscellaneous Appropriations op Surplus. 
 
 This account should include amounts definitely appropriated from surplus 
 except as provided in account WPL8, "Appropriations of Surplus to Sinking 
 and Other Reserve Funds, " to provide a reserve for doubtful accounts and for 
 the discharge of the principal (less discount, if any, suffered at the time of 
 sale) of any indebtedness incurred in the acquisition or improvement of 
 property carried in the real property and equipment account, and other 
 amounts appropriated from surplus and not provided for elsewhere. 
 
 Note.— Similar appropriations made from income should be charged to account WI 32, 
 "Miscellaneous Appropriations of Income." 
 
 WPL 14. Peal Property and Equipment Debits. 
 
 This account should include charges to Profit and Loss as provided in the 
 Classification of Expenditures for Real Property and Equipment on account 
 of property and equipment which has been abandoned, sold, or otherwise 
 retired. Thi3 account should also include such charges as are necessary to 
 adjust real property and equipment accounts when such charges have been 
 authorized by the Interstate Commerce Commission. 
 
 Note.— Adjustments of real property and equipment accounts should be made in 
 conformity with the principles embodied in the Classification of Expenditures for Real 
 Property and Equipment of Carriers by Water. If the accounts prior to January 1, 
 1913 (the effective date of that classification), have been incorrectly stated, and the 
 carrier desires to so adjust that the account "Property Investment" will more accu- 
 rately reflect the facts, application should be made to the Commission for permission 
 to make such adjustments through Profit and Loss. 
 
 WPL 15. Delayed Income Debits. 
 
 This account should include debits relating to operating revenues, operat- 
 ing expenses, and other income items of previous fiscal periods when such 
 items are greatly delayed and relatively large. 
 
 All entries in this account should be made in such detail as will indicate 
 the operating revenue, operating expense, or other income accounts to 
 which they relate. 
 
 Note.— As a rule, items affecting income should be included in the appropriate 
 accounts in the fiscal periodln which they accrue. Only those items which are greatly 
 delayed and the amounts of which are relatively so large as to impair the figures for the 
 current fiscal period should be debited to this account. Other lap-over items should be 
 debited to the appropriate operating revenue, operating expense, or other accounts in 
 the current fiscal period. 
 
22 
 
 II. DEBITS— Continued. 
 WPL 16. Miscellaneous Debits. 
 
 This account should include amounts (not provided for elsewhere) charge- 
 able to Profit and Loss from other accounts, amounts written off in conse- 
 quence of adjustments, and payments not properly chargeable to the income 
 accounts of the fiscal period for which the accounts are stated. Among the 
 items which should be charged to this account are: 
 
 Adjustments or cancellations of old balance-sheet accounts other than real 
 property and equipment accounts. 
 
 Losses or deficits not properly chargeable to Income, such as uncollectible 
 bills for which no reserve has been provided. 
 
 Losses resulting from the sale of investment securities. 
 
 Losses lesulting from the sale, destruction, or abandonment of property 
 carried in balance-sheet account WB 6 (a), "Miscellaneous Investments — 
 Physical Property." 
 
 Debits resulting from adjustments required to bring to par securities issued 
 or assumed by the accounting company and reacquired at a cost exceeding 
 the par value. 
 
 Discounts on stock remaining unextinguished at the time of its retirement. 
 
 Unextinguished discoun ts on funded debt retired before maturity. 
 
 o