Tim Latimer Corporation had the following transactions.

1. Sold land (cost $12,000) for $10,000.

2. Issued common stock at par value for $22,000.

3. Recorded depreciation on buildings for $14,000.

4. Paid salaries of $7,000.

5. Issued 1,000 shares of $1 par value common stock for equipment worth $9,000.

6. Sold equipment (cost $10,000, accumulated depreciation $8,000) for $3,200.

Instructions For each transaction above,

(a) prepare the journal entry, and

(b) indicate how it would affect the statement of cash flows under the direct method.