Exercise 12-11 (Algo) Reconstructed entries LO P3

For each of the following separate transactions:

1. Sold a building costing $32,500, with $21,000 of accumulated depreciation, for $9,000 cash, resulting in a $2,500 loss.
2. Acquired machinery worth $11,000 by issuing $11,000 in notes payable.
3. Issued 1,100 shares of common stock at par for $2 per share.
4. Long-term notes payable with a carrying value of $40,500 were retired for $48,000 cash, resulting in a $7,500 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.

Please answer all parts of the question. Thanks so much!