THE FINANCIAL STATEMENTS IN AN INDUSTRIAL COMPANY

Abstract

**THE FINANCIAL STATEMENTS IN AN INDUSTRIAL COMPANY** In early 1983, the promoters of XYZ, S.A., encouraged by the promising financial statements from 1982, decided to move forward with their activities. One of their most important decisions was to transition from being a commercial company (which sells the same product it purchases from suppliers) to becoming an industrial company (which buys certain products from suppliers, transforms them into others, and offers these to customers). Consequently, they discontinued their relationship with their supplier of product A and turned to another supplier who provided the materials that XYZ would transform into product A itself.

Learning outcomes

We invite the reader to introduce into the chart of accounts the journal entries they believe best reflect what occurred in 1983, based on the information provided below, along with some comments. This will later be compared with the entries presented in Table 15. The events of 1983 are not described in chronological order, but rather in a conceptual order to avoid unnecessarily extending the purely mechanical work.

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