Schedule L—Balance Sheets per Books

The balance sheets should agree with the RIC’s books and records.

Line 1. Cash. Include certificates of deposit as cash on line 1.

Line 4. Tax-exempt securities. Include on this line:

1. State and local government obligations, the interest on which is excludible from gross income under section 103(a); and
2. Stock in another mutual fund or RIC that distributed exempt-interest dividends during the tax year of the RIC.

Line 24. Adjustments to shareholders’ equity. Examples of adjustments to report on this line include:

• Unrealized gains and losses on securities held “available for sale”;

• Foreign currency translation adjustments;

• The excess of additional pension liability over unrecognized prior service cost;

• Guarantees of employee stock (ESOP) debt; and

• Compensation related to employee stock award plans. If the total adjustment to be entered on line 24 is a negative amount, enter the amount in parentheses.