Notes Payable—Long Term—Other – Ford Online Accounting Manual

Liabilities and Net Worth

NOTES PAYABLE—LONG TERM—OTHER	LIABILITY ACCOUNT
	2520

Principal amount due to finance institutions or other sources on long term notes.

			Jrnl.	Dr.	Cr.

Loan from friend of dealer and dealership note issued payable in three years			CR
	Cash in Bank—General			1001
		Notes Payable—Other—Long Term			2520

Subsidiary records should support this account.
Interest not paid on a monthly basis should be accrued monthly as a debit to Account 8740, Interest—Excluding Vehicle & Mortgage, and a credit to Account 2421, Accrued Interest.
The portion of any item in this account that becomes payable within twelve months should be recorded in Account 2040, Notes Payable—Long Term—Current Portion. Payments of principal amounts of applicable long term notes should be charged to Account 2520 until the long term portion has been paid.