1HONG KONG BAPTIST UNIVERSITYCOLLEGE OF INTERNATIONAL EDUCATIONASSOCIATE DEGREE PROGRAMMEFirst Semester 2020/2021Take-home ExaminationCourse Code:ELSS2303Course Title:Principles of Accounting I (Financial Accounting)Release Date:11 Dec 2020 (09:00)Submission Deadline:21 Dec 2020 (18:00)Total Marks:100No. of Pages:6 (including this page)============================================================(1)Academic Honesty:(a)Your work should be original with proper citation in APA format. You are notallowed to search any reference through the internet.Any plagiarism behaviorwill receive zero tolerance and severe penalty will be resulted.(b)You need to submit your answer to Turnitin before your submission.(2)There are FIVE questions.Answer ALL of them.(3)ALL Answers should be prepared by WORDS and properly indicate the questionnumber.
2Question 1 (10 marks)The board of directors of HAPPY Limited is meeting to discuss the results over thepast years before releasing financial statements to the public.The discussion includesthis exchange of conversation:Vincent, the CEO of the company, saying: “This has not been a good year!Revenueis down and expenses are way up.If we are not careful, we’ll report a lossfor thethird year in a row.I can temporarily transfer some land that I own into thecompany’s name, and that will brighten our statement of financial position.Bruce,can you change the method of depreciation from double-declining-balance to straight-line.Also, all expenses should be paid as late as possible and record expenses whencash is paid.Then we can probably get a better profit figure.”