Forfeitures of amounts deposited under options for the sale or lease of property. Profit derived from the sale of securities of other companies. Profit derived from the sale of property carried in Account 103. (Note also Account 174.) NOTE: An analysis of this account will be required in the annual reports of the company to this Commission. 31.410 Debits for telephone plant sold. This account shall include amounts chargeable to surplus in accordance with § 31.2-25 (c), (f), in connection with the sale of telephone plant.*+ 31.413 Miscellaneous debits to surplus. This account shall include amounts chargeable to surplus not provided for elsewhere. Among the items which shall be charged to this account are (note § 31.01-8): Amortization, at the company's option, of the balance in Account 201. Amounts charged to surplus to cover past accrued depreciation not provided for. (Note also Account 171.) Amount of the debit balance in the discount, premium, and debt expense account relating to long-term debt reacquired at the time of its reacquirement. (Note § 31.1-15.) Amount of the debit balances in the discount and premium, and stock expense accounts relating to capital stock reacquired at the time of its reacquirement. (Note 8 31.1-14, also Account 134: 2.) Amounts charged to surplus to extinguish all or any part of the debit balance in any particular discount, premium, and debt expense account for long-term debt actually outstanding. (Note § 31.1-15.) Amounts paid for abrogation of contracts. Appropriations to nonpar stock account. (Note. § 31.1-16:1.) Debits resulting from adjustments required to bring to par securities issued or assumed by the company and reacquired at a cost exceeding the par value. (Note also § 31.1-13.) Delayed debits to income, operating revenue, and operating expense accounts as provided in § 31.01-5. Expenses incurred in connection with the reacquisition of capital stock and long-term debt. (Note also § 31.1-13 (b).) Forfeitures of amounts deposited under options for the purchase or lease of property. Inventory, appraisal, and other costs incident to the acquisition, sale, or lease of property where the transactions are abandoned. Losses of funds due to bank failures. Losses resulting from the sale, destruction, or retirement of property carried in Account 103. (Note also Account 174.) Losses resulting from the sale of securities of other companies. Payments of amounts previously written off through credits to surplus. NOTE: An analysis of this account will be required in the annual reports of the company to this Commission. 31.414 Contractual reservations of surplus. This account shall include_reservations chargeable to surplus when specifically required under the terms of mortgages, deeds of trust, orders of courts, contracts, or other agreements. (Note also § 31.3-31.) *† NOTE A: Reservations of surplus resting in the discretion of the company (i. e., not required by mortgages, contracts, etc.) shall be charged to Account 415. *For statutory citation, see note to § 31.01–1. Page 323 NOTE B: Amounts charged to this account shall be concurrently credited to the appropriate reserve accounts. 31.415 Miscellaneous reservations of surplus. This account shall include reservations of surplus for purposes not provided for elsewhere and not specifically required under terms of mortgages, contracts, etc. It shall include appropriations for investment in telephone plant and surplus reserved at the company's discretion on account of rate litigations, etc. (Note also § 31.3-31.) *† NOTE: Amounts charged to this account shall be concurrently credited to the appropriate reserve accounts. 31.416 Dividend appropriations of surplus. (a) This account shall include dividends on capital stock actually outstanding, if chargeable to surplus. (b) If a dividend is not payable in cash the consideration shall be described in the entry with sufficient particularity to identify it. (c) This account shall be kept so that the dividends on each class of capital stock may be shown separately in the annual reports to this Commission.*† NOTE A: These accounts shall not include charges for dividends on capital stock issued or assumed by the company and held by or for it, whether pledged as collateral, or held in its treasury, in special deposits, or in sinking or other funds. NOTE B: Dividend appropriations of income shall be charged to Account 344. INSTRUCTIONS FOR OPERATING REVENUE ACCOUNTS 31.5-50 Purpose of operating revenue accounts. (a) The operating revenue accounts (500 to 530, inclusive) are designed to show the amounts of money which the company becomes lawfully entitled to receive, less uncollectible revenues, from the furnishing of telephone service (including operations incidental thereto). Credits to the various revenue accounts shall be based upon the actual amounts chargeable for services rendered by the company. It is not required that undetermined amounts of revenue at pay stations lost through fire, theft, or collection of slugs or coins having no legal tender value shall be included in the operating revenue accounts. (Note also §§ 31.01-4 to 31.01-6, and Account 650.) (b) In addition to monthly service charges, the operating revenue accounts appropriate for the class of service involved shall be credited with: (1) Amounts charged for connection, restoration and termination of service, and for inside moves, outside moves, instrument changes and similar service requirements. (2) Amounts of initial nonrecurring charges for special or auxiliary plant or equipment furnished in rendering service to a customer, except that charges for the cost of providing plant or equipment the ownership of which rests with or will revert to the customer shall be credited to the accounts charged with the cost of such plant or equipment. (3) Amounts of service charges for supplemental or auxiliary equipment furnished in rendering service to a customer-for example, extension stations, auxiliary receivers, auxiliary signals, code calling and conference equipment, etc. Page 324 *For statutory citation, see note to § 31.01-1. (c) The classification of operating revenues provides separate accounts for local revenue and for toll revenue. In case it is necessary to apportion the revenue between these accounts, the company shall be prepared when so required by this Commission to furnish the basis used in making such apportionment.* [Instruction 50, Orders 7-C, 7-D, FCC, effective Jan. 1, 1937] 31.5-51 Deductions from revenues. Discounts allowed customers for prompt payment, corrections of overcharges, authorized refunds of overcollections theretofore credited, authorized refunds and adjustments on account of failure in service, and other corrections shall be charged to the revenue account previously credited with the amounts involved. [Instruction 51, Orders 7-C, 7-D, FCC, effective Jan. 1, 1937] 31.5-52 Commissions. (a) Commissions paid to employees or others in place of salaries or other compensation for services rendered, such as public telephone commissions, shall be charged to the appropriate expense accounts and not to the revenue accounts. (b) Originating and other commissions representing divisions of operating revenues between telephone companies shall be accounted for through the appropriate operating revenue accounts.* [Instruction 52, Orders 7-C, 7-D, FCC, effective Jan. 1, 1937] OPERATING REVENUE ACCOUNTS [Note particularly §§ 31.01–1 (c), 31.01–4, 31.01–5, and 31.01-6] ACCOUNTS FOR CLASS A COMPANIES ACCOUNTS FOR CLASS B COMPANIES Account 500 Local service revenues. TOLL SERVICE REVENUES 510 Toll service revenues. MISCELLANEOUS REVENUES 520 Miscellaneous operating reve nues. UNCOLLECTIBLE REVENUES 530 Uncollectible operating revenues-Dr. LOCAL SERVICE REVENUES 31.500 Subscribers' station revenues. This account shall include local service revenues from business and residence subscribers' service and from semipublic service, including such revenues from main stations, private branch exchange systems, order turrets, and other sub *For statutory citation, see note to § 31.01-1. Page 325 scribers' stations, whether the charge is based upon a flat rate or a measured rate. It shall include local service revenues from mileage charges and auxiliary equipment in connection with such subscribers' service. This account shall include also revenues from directory listings for such subscribers' service requirements, such as listings of extra names and alternate call numbers in the alphabetical sections of directories.*† NOTE A Local service revenues from public telephones and from service stations shall be credited to Accounts 501 and 503, respectively. NOTE B: Revenues from advertising in directories (i. e., other than listings for service requirements) shall be credited to Account 523. +In §§ 31.500 to 31.530, inclusive, the numbers to the right of the decimal correspond with the respective account numbers in Uniform system of accounts for (Class A and Class B) telephone companies, Federal Communications Commission, effective Jan. 1, 1937 (Orders 7-C, 7-D). Cross references to accounts are made by citing the account number, e. g., Account 500 instead of the corresponding section number (§ 31.500). 31.501 Public telephone revenues. This account shall include local service revenues from public telephone service.*† NOTE A Local service revenues from semipublic service shall be credited to Account 500. NOTE B: Public telephone commissions shall be charged to Account 648. 31.503 Service stations. This account shall include local service revenues from stations the lines or equipment of which are provided wholly or in part by others and to which the company furnishes local service, switching service, or both.*t 31.504 Local private line services. This account shall include local service revenues from private line services and facilities furnished between points in the same local service area under contracts providing exclusive service, either continuously or during stated periods (i. e., service not requiring central office switching operations). It shall include local private line service revenues from lines furnished for such purposes as telephone, telegraph, teletypewriter, public address, radio program transmission, and remote control. It shall include also charges for toll terminals and local loops furnished either continuously or during stated periods in connection with toll services (including those furnished for use in connection with lines of other companies); and charges for instruments and equipment, when furnished in connection with such lines and loops.*+ 31.506 Other local service revenues. This account shall include all local service revenues not provided for elsewhere.*+ TOLL SERVICE REVENUES 31.510 Message tolls. (a) This account shall include toll service revenues from the transmission of messages, including such revenues from messages transmitted entirely over the company's own lines, and amounts representing divisions of toll service revenues received (1) from messages transmitted partly over the company's lines and partly over lines of other companies, (2) as compensation for originating or terminating toll messages of other companies, and (3) as compensation for switching toll messages between lines of other companies. Page 326 *For statutory citation, see note to § 31.01-1. (b) This account shall include revenues from guarantees at toll stations and from messenger service in notifying persons of toll calls.*† 31.512 Toll private line services. This account shall include toll service revenues from private line services and facilities furnished between different local service areas under contracts providing exclusive service either continuously or during stated periods, including, (a) revenues from services involving only the use of the company's own lines, and (b) amounts representing divisions of toll private line service revenues when such service involves the use of lines of other companies. It shall include toll private line service revenues from lines furnished for such purposes as telephone, telegraph, teletypewriter, public address, radio program transmission, and remote control.*t NOTE A: Charges for local loops furnished either continuously or during stated periods and the instruments used in connection therewith (including those furnished for use in connection with lines of other companies) shall be credited to Account 504. NOTE B: Toll service revenues from the transmission of messages charged for on a per-message basis shall be included in Account 510. 31.516 Other toll service revenues. This account shall include all toll service revenues not provided for elsewhere.*† MISCELLANEOUS REVENUES 31.521 Telegraph commissions. This account shall include commissions receivable for the billing or collection of telegraph, cable, or wireless tolls on messages transmitted by others.*t 31.523 Directory advertising and sales. This account shall include revenues from advertising in directories and from the sale or furnishing of new directories either of the company's own issue or directories purchased from others. It shall include all revenues from the classified sections and from bold-face listings, marginal displays, inserts, cover and other advertisements in alphabetical sections of directories.*† NOTE A Revenues from directory listings for service requirements, such as listings of extra names and alternate call numbers in the alphabetical sections of directories, shall be credited to Account 500. NOTE B: Revenues from advertising other than in directories shall be credited to Account 526. NOTE C: Amounts received as salvage on old directories shall be credited to Account 649. 31.524 Rent revenues. This account shall include revenues (including taxes when borne by the lessee) from the rental or subrental to others of telephone plant constituting a part of the property used by the company in its telephone operations, such as instruments, equipment, and lines furnished apart from telephone service (note § 31.013 (gg)) rendered by the company; space in conduits; pole line space for attachments; space in buildings; and carrying charges on property used in joint operations. (Note also § 31.6-62, and Note B to this account.)** NOTE A: The expenses of maintaining and operating the rented property, including depreciation and insurance, shall be included in the appropriate operating *For statutory citation, see note to § 31.01-1. Page 327 |