Set up accounts. Go to QuickBooks and login to your company. Choose the Accounting menu from the left-hand side of the screen and select Chart of Accounts. Click New (green button on the upper right side of the screen). Use the Chart of Accounts in "ACC-360 QuickBooks Assignment 2 Resources" located in topic materials. Create six accounts named: Equipment Revenues, Maintenance Contract Revenues, Marketing Expenses, Distribution Expenses, Customer Maintenance Costs, and Administrative Costs. Enter the Name, Account Type, and Detail Type, for each account. Enter Save and New to enter each account. Save and Close when you have entered all accounts. These accounts should now be shown in QuickBooks on your Chart of Accounts. Please note that "Cost of Goods Sold" should already be on your Chart of Accounts.

Step 2:

Prepare a budget.

Determine the budgeted revenue and expense items for your company for 2018. Use the "Company's 2017 Annual Income Statement" from "ACC-360 QuickBooks Assignment 2 Resources" located in topic materials. The companys annual income statement for 2017 is used as a basis for preparing the 2018 budget.

Additional information to be used in preparing the budgeted items for 2018 are as follows:

~Selling prices of equipment are expected to increase by 10% as the economic recovery begins. The selling price of each maintenance contract is expected to remain unchanged from 2017.

~Equipment sales in units are expected to increase by 6%, with a corresponding 6% growth in units of maintenance contracts.

~Cost of each unit sold is expected to increase by 5% to pay for the necessary technology and quality improvements.

~Marketing costs are expected to increase by $290,000, but administration costs are expected to remain at 2017 levels.

~Distribution costs vary in proportion to the number of units of equipment sold.

~Two maintenance technicians are to be hired at a total cost of $160,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time.

~There is no beginning or ending inventory of equipment.

Company's 2017 Annual Income Statement $8,000 1,900 $9,900 4,000 5,900 Revenues Equipment Maintenance contracts Total revenues Cost of goods sold Gross margin Operating costs Marketing Distribution Customer maintenance Administration Total operating costs Operating income 630 100 1,100 2,750 $3,150