Novak Products Inc. has the following account balances on March 31, 2023: Inventory Buildings (net) $374,000 679,500 Patents (net) 548,000 Bank loan payable 331,500 Common shares, no par value, 9,900 shares outstanding 831,600 Deficit (1,250,500) In April 2023, management agrees to a financial reorganization. As part of the reorganization creditors are willing to forgive the debt in exchange for 100% of the outstanding shares. It is determined that assets have the following fair values: inventory $153,500, patent $256,000, and buildings $1,106,500. Prepare the required journal entries for the financial reorganization. Use Deficit account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit (To restate for impairments of assets) (To close Deficit account) (To restate assets and liabilities)