Step 2:

Update your chart of accounts to include accounts related to a manufacturer.

To convert your QuickBooks service companys accounting system to that used by a manufacturing company, you will need to create eight new General Ledger accounts.

Those accounts are:

1. Raw Materials Inventory
2. Work in Process Inventory
3. Finished Goods Inventory
4. Wages Payable
5. Factory Overhead
6. Sales Revenue
7. Cost of Goods Sold
8. Selling and Administrative Expenses

Go to QuickBooks and log into 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).

Enter the Account Type, Detail Type, and Name for each of the accounts listed above. You must determine the Account Type and Detail Type based upon your understanding of these accounts as learned in class. Enter Save and New to enter another account. Save and Close when you have entered all accounts.

I took the liberty of going to the QuickBooks software and got all the "Account Types" and their associated "Detail types." Pay attention to the semi-colon in each detail type. Also, I would advise to keep this list for other QuickBooks questions that involve General Ledger Accounts.

Type Detail Type

Accounts Receivable----------------Accounts Receivable

Other Current Assets ---------------Allowance for bad debts; Development costs; Employee cash advances; Inventory; Investment-mortgage/real estate loans; Investment-tax-exempt securities; Investment-U.S.-Government obligations; Investments-other; Loans to officers; Loans to others; Loans to stockholders; Other current assets; Prepaid expenses; Retainage; Undeposited funds.

Bank---------------------------------------Cash on hand; Checking; Money market; Rents held in trust; Savings; Trust account.

Fixed Assets----------------------------Accumulated amortization; Accumulated depletion; Accumulated depreciation; Buildings; Depletable assets; Fixed asset computers; Fixed asset copiers; Fixed asset furniture; Fixed asset other tools equipment; Fixed asset phone; Fixed asset photo video; Fixed asset software; Furniture & fixtures; Intangible assets; Land; Leasehold improvements; Machinery & equipment; Other fixed assets; Vehicles.

Other Assets----------------------------Accumulated amortization of other assets; Goodwill; Lease buyout; Licenses; Organizational costs; Other long-term assets; Security deposits.

Accounts Payable (A/P)-------------Accounts payable (A/P).

Credit Card------------------------------Credit card.

Other Current Liabilities------------Federal income tax payable; Insurance payable; Line of credit; Loan payable; Other current liabilities; Payroll clearing; Payroll tax payable; Prepaid expenses payable; Rents in trust-liability; Sales tax payable; State/local income tax payable; Trust accounts-liabilities; Undistributed tips.

Long Term Liabilities----------------Notes payable; Other long term liabilities; Shareholder notes payable.

Equity------------------------------------Accumulated adjustment; Common stock; Estimated taxes; Health insurance premium; Health savings account contribution; Opening balance equity; Owner's equity; Pain-in capital or surplus; Partner contributions; Partner distributions; Partner's equity; Personal expense; Personal income; Preferred stock; Retained earnings; Treasury stock.

Income----------------------------------Discounts/refunds given; Non-profit income; Other primary income; Sales of product income; Service/fee income; Unapplied cash payment income.

Other Income-------------------------Dividend income; Interest earned; Other investment income; Other miscellaneous income; Tax-exempt interest.

Cost of Goods Sold----------------Cost of labor-COS; Equipment rental-COS; Other costs of services-COS; Shipping, freight & delivery-COS; Supplies & materials-COGS.

Expenses------------------------------Advertising/promotional; Auto; Bad debts; Bank charges; Charitable contributions; Communication; Cost of labor; Dues & subscriptions; Entertainment; Entertainment meals; Equipment rental; Finance costs; Insurance; Interest paid; Legal & professional fees; Office/general administrative expenses; Other business expenses; Other miscellaneous service costs; Payroll expenses; Payroll tax expenses; Payroll wage expenses; Promotional meals; Rent or lease of buildings; Repair & maintenance; Shipping, freight & delivery; Supplies & materials; Taxes paid; Travel; Travel meals; Unapplied cash bill payment expense; Utilities.

Other Expenses---------------------Amortization; Depreciation; Exchange gain or loss; Gas and fuel; Home office; Homeowner rental insurance; Mortgage interest home office; Other home office expense; Other miscellaneous expense; Other vehicle expenses; Parking and tolls; Penalties & settlements; Property tax home office; Rent and lease home office; Repairs and maintenance home office; Utilities home office; Vehicle; Vehicle insurance; Vehicle lease; Vehicle loan; Vehicle loan interest; Vehicle registration; Vehicle repairs; Wash and road services.