he Larisa Company is coming out of reorganization with the following accounts:

	Book Value		Fair Value
Receivables	$	98,000	$	126,000
Inventory		218,000		246,000
Buildings		318,000		436,000
Liabilities		318,000		318,000
Common stock		348,000
Additional paid-in capital		56,000
Retained earnings (deficit)		(88,000)

The company's assets have a $868,000 reorganization value. As part of the reorganization, the company's owners transferred 75 percent of the outstanding stock to the creditors.

Prepare the journal entry that is necessary to adjust the company's records to fresh start accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the assets and liabilities after reconstruction.