For each of the following separate transactions: 1. Sold a building costing $38,000, with $23,200 of accumulated depreciation, for $11,200 cash, resulting in a $3,600 loss. 2. Acquired machinery worth $13,200 by issuing $13,200 in notes payable. 3. Issued 1,320 shares of common stock at par for $2 per share. 4. Long-term notes payable with a carrying value of $41,600 were retired for $50,200 cash, resulting in a $8,600 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.