314 Notes Payable – Other

Liabilities

Notes Payable

Synopsis

Account 314 is established to record amounts paid or payable on short term loans.  Credit lines to floor Company Vehicles, Driver Training cars or to finance other notes payable within the next 12 months are typical of Notes Payable covered by this account.

Debits

Credits

  1. Prepaid interest

  2. Payments made

  1. Notes payable on driver training vehicles

  2. Notes payable on permanent company vehicles

  3. Other notes payable due within 12 months from the current operating report date

  4. Portion of long term notes payable, including mortgages, due within 12 months

  5. Expired portion of prepaid interest

 

Comments

A credit balance represents the amount owed on notes secured by driver training and permanent company vehicles and on notes not otherwise provided for. 

Note:

The amount of notes due beyond the next 12 month period is recorded in Account 334, Long Term Debt.  In the case of Real Estate Mortgages, the long term portion (beyond 12 months) is recorded in Account 335, Mortgages Payable – Real Estate.