the amount of cash realized from the sale of the carrier's securities and deposited with trustees to be held until invested in property for the carrier. When the purposes of such deposits are satisfied and the deposits are released, this account shall be credited with the amounts released.

§ 35.1659

Other miscellaneous funds.

(a) This account shall include the book cost of assets that have been segregated in special funds for specific purposes not provided for elsewhere.

(b) A separate subaccount, with appropriate title, shall be maintained for each class of funds.

§ 35.1698 Amortized discount and premium on investment securities.

(a) This account shall include the amount of amortized discount and premium charged or credited as interest from securities held as long-term investments, as provided in § 35.10-7.

(b) A separate subaccount, with appropriate title, shall be maintained for each issue or series of securities with respect to which amounts are entered herein, with an appropriate reference to the account in which the cost of the securities is recorded. § 35.1699

Allowance for doubtful in

99-205-69- -24

funds, for the payment of interest, dividends, and other debts when such payments are due 1 year or less from the date of deposit; also the amount of cash deposited to insure the performance of contracts to be performed within 1 year from the date of deposit, and other cash deposits for specific purposes not provided for elsewhere. When the purposes of such deposits are satisfied and the deposits are released, this account shall be credited with the amounts released.

(b) This account shall be subdivided as follows:

1715:01 Special deposits-Interest. 1715:02 Special deposits-Dividends. 1715:99 Special deposits-Other.

§ 35.1720 Working cash advances.

This account shall include the amounts of cash advanced to officers, agents, and employees, particularly cash or working funds from which certain expenditures are to be made and accounted for. § 35.1725 Temporary investments.

(a) This account shall include the book cost of securities acquired for the purpose of temporarily investing cash, such as demand and time loans, bankers' acceptances, United States Treasury certificates, and other similar investments. (b) This account shall be subdivided as follows:

1725:01 1725:99

Temporary investments-Affiliates.
Temporary investments-Other.

§ 35.1730 Receivables from customers. (a) This account shall include amounts receivable from customers for services.

(b) The records supporting the entries in this account shall be so maintained as to show separately (1) amounts charged for services rendered, and (2) amounts charged for services to be rendered. (See also § 35.2155.)

NOTE A: Amounts representing revenues accrued but not due shall be included in account 1770, "Unmatured accrued receivables."

NOTE B: Amounts receivable from other carriers for participation in transmission shall be included in the accounts maintained in accordance with § 35.03-19.

NOTE C: Amounts due on notes accepted in settlement of customers' accounts shall be included in account 1751, "Notes receivable."

§ 35.1742 Traffic settlements receivable from affiliates.

This account shall include the total of the amounts receivable from affiliated

carriers against each of which there is a net debit balance in the accounts maintained for traffic settlements. (See § 35.03-19.)

§ 35.1749 Other receivables from affil. iates.

(a) This account shall include amounts receivable from affiliates not provided for elsewhere. (See particularly §§ 35.1725, 35.1730, 35.1742, 35.1770, 35.1775, and 35.1785.)

(b) This account shall be subdivided as follows:

1749:01 Matured interest receivable. 1749:02 Declared dividends receivable. Matured rents receivable.

1749:03 1749:04 Current notes receivable. (See also § 35.1620.)

1749:99 Other accounts receivable.

(c) In stating the balance sheet there may be included in this account the net amounts receivable from affiliates against each of which there is a net debit balance between amounts in this account and amounts in account 2129, "Other payables to affiliates."

Receivables From Nonaffiliates

§ 35.1751 Notes receivable.

(a) This account shall include amounts receivable from persons other than affiliates on notes, drafts, acceptances, and other evidences of indebtedness, payable on demand or not more than 1 year from the date of issuance. (See also § 35.1629.)

(b) The book amount of items inIcludible in this section that are discounted or sold without releasing the carrier from liability thereon, shall be credited to this account and reported as a contingent liability. (See particularly § 35.10-16.)

(c) This account shall be subdivided as follows:

NOTE A: Declared dividends receivable from affiliates shall be included in account 1749, "Other receivables from affiliates."

NOTE B: Declared dividends receivable that do not mature until after the first day following the date of the balance sheet shall be included in account 1770, "Unmatured accrued receivables."

§ 35.1755 Matured rents receivable.

This account shall include amounts representing rentals receivable from persons other than affiliates that are matured and subject to current settlement.

NOTE A: Rentals receivable that are accrued but unmatured shall be included in account 1770, "Unmatured accrued receivables."

NOTE B: Amounts receivable for minor rentals shall be included in account 1730, "Receivables from customers."

§ 35.1759 Other accounts receivable.

(a) This account shall include the amounts of receivables from persons other than affiliates not provided for elsewhere. (See §§ 35.1725 and 35.1730; also §§ 35.1751 to 35.1758, inclusive, and §§ 35.1770, 35.1775, and 35.1785.)

(b) This account shall be subdivided as follows:

(a) This account shall be credited with amounts charged to account 4935, "Uncollectible revenues," account 5299, "Other deductions from ordinary income," and account 6120, "Extraordinary current income charges," to provide for uncollectible receivables, under a plan consistently followed and adjusted for errors in estimates.

(b) This account shall be charged with any amounts covered herein that are determined to be impracticable of collection and shall be credited with amounts collected that previously were charged hereto.

(c) The records supporting the entries in this account shall be so maintained as to show the amount applicable to each class of receivables for which allowances are established, and also the account that was charged with each credit in this account.

§ 35.1770 Unmatured accrued receivables.

(a) This account shall include the amounts of revenue estimated to have accrued for services not billed but subsequently billable and not due under contract and the amounts of interest, rent, and other items accrued, and dividends declared prior to the date for which the balance sheet is made, but not receivable until after the first day following that date.

(b) This account shall be subdivided as follows: 1770:01

Accrued communication revenue. 1770:02 Accrued interest.

1770:03

1770:04

1770:99

Declared dividends. Accrued rents.

Other accrued receivables.

§ 35.1775 Subscriptions to capital stock.

(a) The amount of each subscription to capital stock of the carrier shall be charged to this account at the time the subscription is accepted. The book amount of the stock subscribed shall be credited to account 2420, “Capital stock subscribed; unissued." The difference between the foregoing amounts shall be charged or credited, as appropriate, to the discount and premium account maintained under the provisions of § 35.10-13 (a). (See also §§ 35.10-9 and 35.1780.)

(b) This account shall be subdivided as follows:

1775:01 Amounts subscribed by affiliates. 1775:02 Amounts subscribed by officers and employees.

1775:03

1775:99

Amounts subscribed by underwrit

ers.

Amounts subscribed by others.

§ 35.1780 Deposits on subscriptions to capital stock.

(a) This account shall be credited with amounts received as payments on subscriptions to capital stock.

(b) When payment for the total amount of a subscription has been received, this account shall be charged and account 1775, "Subscriptions to capital stock," shall be credited with such total amount.

(c) Any amounts in this account which become the property of the carrier by forfeiture shall be charged hereto and credited to account 2599, "Other capital surplus."

(d) This account shall be subdivided as follows: 1780:01 1780:02

Deposits received from affiliates. Deposits received from officers and employees.

1780:03 Deposits received from underwriters.

1780:99 Deposits received from others. § 35.1785 Subscriptions to bonds.

(a) The amount of each subscription to bonds of the carrier shall be charged to this account at the time the subscription is accepted. The face amount of the bonds subscribed shall be credited to account 2020, "Bonds subscribed; unissued." The difference between the foregoing amounts shall be charged or credited, as appropriate, to the discount and premium account maintained under the provisions of § 35.10-14 (a). (See also § 35.1790.)

(b) This account shall be subdivided as follows:

(b) When payment for the total amount of a subscription has been received, this account shall be charged and account 1785, "Subscriptions to bonds," shall be credited with such total amount.

(c) Any amounts in this account which become the property of the carrier by forfeiture shall be charged hereto and credited to account 6110, "Extraordinary current income credits."

(d) This account shall be subdivided as follows:

1790:01 Deposits received from affiliates. 1790:02 Deposits received from officers and employees.

1790:03 Deposits received from underwriters. 1790:99 Deposits received from others.

§ 35.1795 Material and supplies.

(a) This account shall include the cost (consideration being given to the adjustments outlined in paragraphs (b), (c), (d), and (e) of this section) of unapplied material and supplies held for use in communication service (including plant supplies, unissued small tools, fuel, stationery, other supplies, and supply expense), and of material and articles of the carrier in process of conversion and manufacture for supply stock.

(b) Cost shall include the purchase price at the point of free delivery, plus customs duties, excise taxes, and other taxes on purchases, insurance, cost of inspection, special tests prior to acceptance, loading and unloading, transportation, and other directly assignable charges. (Transportation and other charges impracticable of inclusion in the cost of the particular material to which they relate shall be charged to account 9016, "Supply clearing account.")

(c) Cash and other discounts on material shall be deducted from the cost of the particular material to which they relate or credited to the account to which the material is charged. (When impracticable of such treatment they shall be credited to account 9016, "Supply clearing account.")

(d) Material recovered in connection with construction, maintenance, or retirement of plant shall be included in this account as follows:

(1) Reusable material shall be included in the appropriate subdivision of this account at original cost, estimated if not known.

(2) The cost of repairing reusable material shall be charged to the appropriate operating-expense account.

(3) Scrap and nonusable material shall be included in this account at the estimated net amount realizable therefrom. The differences between the amounts realized for scrap and nonusable material sold and the amount at which the material was included in this account shall be adjusted to the accounts credited when the material was charged to this account. (When impracticable of such treatment, the differences shall be adjusted to account 9016, "Supply clearing account.")

(e) Inventories of material and supplies shall be taken during each calendar year and the necessary adjustments shall be made to bring the balance in this account into agreement with the actual inventories. In effecting the adjustments, differences that can be assigned to important classes of material shall be equitably adjusted among the accounts to which such classes of material were charged subsequent to the previous inventory. Other differences shall be equitably apportioned among the accounts to which material has been charged since the last inventory or included in account 9016, "Supply clearing account."

(f) This account shall be subdivided as follows:

1795:01 Material held for use in the carrier's communication operations. Material in process.

1795:02 1795:03

Merchandise known to be held predominantly for sale or resale, or for use in jobbing or contracting operations.

1795:04 Material and supplies held for other than communication operations.

1795:05 Undistributed supply items. § 35.90-2.)

(See

This account shall be charged with the amounts of insurance premiums paid in advance. As the term expires for which the insurance premiums were paid, this account shall be credited at monthly intervals and the appropriate accounts charged.

§ 35.1815 Prepaid rents.

This account shall be charged with the amounts of rents paid in advance. As the term expires for which the rents were paid, this account shall be credited at monthly intervals and the appropriate accounts charged.

§ 35.1820 Prepaid taxes.

This account shall be charged with the amounts of taxes paid in advance. As the term expires for which the taxes were paid, this account shall be credited at monthly intervals and the appropriate accounts charged.

§ 35.1899 Other prepayments.

This account shall be charged with the amounts of prepayments not provided for elsewhere. As the term expires for which the payments were made, this account shall be credited at monthly intervals and the appropriate accounts charged.

Deferred Charges

§ 35.1910 Extraordinary maintenance, depreciation, and retirements.

This account shall include such amcunts of the unprovided-for loss in service value of plant retired for causes not contemplated in prior allowances for depreciation as are authorized or directed by the Commission to be included herein. (See also § 35.04-4.) It shall also include such other amounts as may be authorized or directed by the Commission to be included herein.

§ 35.1915 Capital-stock expense.

(a) This account shall include the amounts of stock expenses that have not been charged to account 6120, "Extraordinary current income charges." (See particularly § 35.10-13.)

(b) A separate subaccount, with appropriate title, shall be maintained for stock expenses applicable to each class of capital stock

NOTE: Expenses incurred in connection with the reacquisition and resale of capital stock shall be accounted for as provided in § 35.10-9.

§ 35.1920 Long-term debt expense.

(a) This account shall include the amounts of debt expenses that have not been charged to account 5245, "Amortization of debt expense," or to account 6120, "Extraordinary current income charges." (See particularly § 35.10–14.)

(b) A separate subaccount, with appropriate title, shall be maintained for debt expenses applicable to each issue or series of long-term debt.

NOTE: Expenses incurred in connection with the reacquisition and resale of longterm debt shall be accounted for as provided in 35.10-14.

§ 35.1925 Discount on capital stock.

This account shall include the total of the debit balances in the accounts for discount and premium on capital stock. (See particularly § 35.10-13.)

§ 35.1930 Unamortized discount on debt.

This account shall include the total of the debit balances in the accounts for discount and premium on long-term debt. (See particularly § 35.10-14.)

§ 35.1935 Preliminary survey and investigation charges.

(a) This account shall be charged with ali preliminary expenditures for surveys, plans, investigations, etc., made for the purpose of determining the feasibility of major projects under contemplation such as the construction, retirement, purchase, or sale of plant. If a project is authorized, the amounts applicable thereto shall be credited to this account and charged to the appropriate accounts. (See also note at the end of this section.) If a project is abandoned. the amounts applicable thereto shall be credited to this account and when borne by the carrier, shall be charged to account 6120, "Extraordinary current income charges," unless otherwise authorized or directed by the Commission.

(b) The records supporting the entries in this account shall be so maintained that the carrier can furnish complete information as to the nature and purpose of the surveys, plans, or investigations, and the nature and respective amounts of the charges.