For each of the following separate transactions:

1. Sold a building costing $31,500, with $20,600 of accumulated depreciation, for $8,600 cash, resulting in a $2,300 loss.
2. Acquired machinery worth $10,600 by issuing $10,600 in notes payable.
3. Issued 1,060 shares of common stock at par for $2 per share.
4. Note payables with a carrying value of $40,300 were retired for $47,600 cash, resulting in a $7,300 loss.

(a) Prepare the reconstructed journal entry.

1. Record Sale of Building

2. Record Acquisition of machinery

3. Record the issuance of common stock for cash

4. Record payment of cash to retire debit

(b) Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows.

Statement of Cash Flows (partial) Cash flows from investing activities Cash flows from financing activities