For each of the following separate transactions:

1. Sold a building costing $34,000, with $21,600 of accumulated depreciation, for $9,600 cash, resulting in a $2,800 loss.
2. Acquired machinery worth $11,600 by issuing $11,600 in notes payable.
3. Issued 1,160 shares of common stock at par for $2 per share.
4. Note payables with a carrying value of $40,800 were retired for $48,600 cash, resulting in a $7,800 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.