Sold a building costing $$32,000,$ with $$20,800$ of accumulated depreciation, for $$8,800$ cash, resulting in a $$2,400$ loss.

Acquired machinery worth $$10,800$ by issuing $$10,800$ in notes payable.

Issued $1,080$ shares of common stock at par for $$2$ per share.

Long$-$term notes payable with a carrying value of $$40,400$ were retired for $$47,800$ cash, resulting in a $$7,400$ 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.

Complete this question by entering your answers in the tabs below.

Prepare the reconstructed journal entry.

Journal entry worksheet

$1$

$2$

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$4$

Record sale of building.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[($a$),,,],[,,,],[,,,],[,,,],[,,,]]$