For each of the following separate transactions: Sold a building costing $39,000, with $23,600 of accumulated depreciation, for $11,600 cash, resulting in a $3,800 loss. Acquired machinery worth $13,600 by issuing $13,600 in notes payable. Issued 1,360 shares of common stock at par for $2 per share. Note payables with a carrying value of $41,800 were retired for $50,600 cash, resulting in a $8,800 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.

Date       General Journal                        Debit            Credit

               Cash                                         $11,600

               Accumulated dep - Building   $23,600  

               Loss on sale of assets             $3,800

                        Building                                               $39,000

               (To record sale of building)

               Machinery                                 $13,600  

                       Note payable                                       $13,600

               (To record acquisition of machinery)

               Cash                                           $2,720  

                        Common stock                                    $2,720

               (To record issuance of common stock)  

                Note payable                           $41,800  

                Loss on retiring of debt           $8,800  

                             Cash                                                $50,600

                (To record payment of cash to retire debt)  

2. Cash flow from investing activities

Cash received from sale of building                            $11,600

Net cash provided by investing activities                $11,600

Cash flow financing activities

Cash received from issuance of common stock        $2,720

Cash paid to retire note                                               $(50,600)

Net cash used by financing activities                       $(47,880)

and whats your questoin

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