#7

1. Sold a building costing $35,000, with $22,000 of accumulated depreciation, for $10,000 cash, resulting in a $3,000 loss. 2. Acquired machinery worth $12,000 by issuing $12,000 in notes payable. 3. Issued 1,200 shares of common stock at par for $2 per share. 4. Long-term notes payable with a carrying value of $41,000 were retired for $49,000 cash, resulting in a $8,000 loss. (a) Prepare the reconstructed journal entry. (b) Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows. Record sale of building. Note: Enter debits before credits. Record acquisition of machinery. Note: Enter debits before credits. Record the issuance of common stock for cash. Nate: Fnter debits before credits. Record payment of cash to retire debt. F-L.-. Aahite hefore credits. Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows. Note: Amounts to be deducted should be indicated by a minus sign