Sold a building costing $$35,000,$ with $$22,000$ of accumulated depreciation, for $$10,000$ cash, resulting in a $$3,000$

loss.

Acquired machinery worth $$12,000$ by issuing $$12,000$ in notes payable.

Issued $1,200$ shares of common stock at par for $$2$ per share.

Long$-$term notes payable with a carrying value of $$41,000$ were retired for $$49,000$ cash, resulting in a $$8,000$ 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.

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Identify the effect it has, if any, on the investing section ar financing section of the statement of cash flows.

Note: Amounts to be deducted should be indicated by a minus sign.