For each of the following separate transactions:

Sold a building costing $31,000, with $20,400 of accumulated depreciation, for $8,400 cash, resulting in a $2,200 loss.

Acquired machinery worth $10,400 by issuing $10,400 in notes payable.

Issued 1,040 shares of common stock at par for $2 per share.

Long-term notes payable with a carrying value of $40,200 were retired for $47,400 cash, resulting in a $7,200 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.