Question

Marigold Corp. had the following transactions during the current period. Mar. 2 Issued 4,700 shares of $5 par value common stock to attorneys in payment of a bill for $28,400 for services performed in helping the company to incorporate. June 12 Issued 61,300 shares of $5 par value common stock for cash of $391,100. July 11 Issued 1,825 shares of $120 par value preferred stock for cash at $140 per share. Nov. 28 Purchased 2,750 shares of treasury stock for $77,000. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is er is required, select "No Entry" for the account titles and enter o for the amounts.)

Answer 1

When buying and selling stock, the net profit is determined by calculating the difference between the selling price and the buying price, and then subtracting any transaction fees.

Step-by-step explanation:

When buying and selling stock, your net profit is determined by calculating the difference between the selling price and the buying price, and then subtracting any transaction fees. For example, if you purchased 1000 shares of Nike at $24.50 per share and sold them at the current price of $39.75 per share, with a transaction fee of $9.99, your net profit would be:

Selling price per share - Buying price per share - Transaction fee = Net profit per share

$39.75 - $24.50 - $9.99 = $5.26

So, your net profit from each stock transaction would be $5.26 per share.