For each of the following separate transactions:

1. Sold a building costing $37,000, with $22,800 of accumulated depreciation, for $10,800 cash, resulting in a $3,400 loss.
2. Acquired machinery worth $12,800 by issuing $12,800 in notes payable.
3. Issued 1,280 shares of common stock at par for $2 per share.
4. Long-term notes payable with a carrying value of $41,400 were retired for $49,800 cash, resulting in a $8,400 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.