Compute the Net Income for 2016 Based on the Following

question 140

Essay

Compute the net income for 2016 based on the following amounts presented on the adjusted trial balance of Fley Company. $\begin{array} { l r } \text { Accumulated Depreciation - Equip. } & \$ 25,000 \\\text { Depreciation Expense } & 14,000 \\\text { Salaries and Wages Expense } & 25,000 \\\text { Service Revenue } & 48,000 \\\text { Unearned Service Revenue } & 7,000\end{array}$

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Definitions:

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal biannually, leading to interest on interest.

Quarterly Compounded

Interest on an investment or loan that is calculated and added to the principal balance four times a year.

Nominal Rate

The advertised or stated interest rate on a loan or investment, not accounting for compounding or inflation.

Compounded Monthly

A method of calculating interest where accrued interest is added to the principal sum of a loan or deposit each month.