Exercise 15-7 Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1. 2. 3. Purchased 5,000 treasury shares at $45 per share. Resold 2,000 of the treasury shares at $49 per share. Resold 500 of the treasury shares at $40 per share. Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method. Paid-in Capital Stockholders' Equity Retained Earnings Earnings Net Income Assets Liabilities #lam