Posters Inc. filed for bankruptcy under Chapter $11$ on January $1,2019.$ The following is information regarding their financial condition as of June $30,2019,$ before the company's reorganization plan was approved by the court $($in US dollars$)$:

Fair Value Book Value

Cash $150\mathrm{.}000\mathrm{.}000150\mathrm{.}000\mathrm{.}000$

Accounts receivable $-$ net $52\mathrm{.}500\mathrm{.}00050\mathrm{.}000\mathrm{.}000$

Inventory $30\mathrm{.}000\mathrm{.}00060\mathrm{.}000\mathrm{.}000$

PPE $-$ net $235\mathrm{.}000\mathrm{.}000240\mathrm{.}000\mathrm{.}000$

Patent $25\mathrm{.}000\mathrm{.}0000$

$492\mathrm{.}500\mathrm{.}000$

Accounts payable $55\mathrm{.}000\mathrm{.}000$

Salaries payable $75\mathrm{.}000\mathrm{.}000$

Prepetition liabilities $305\mathrm{.}000\mathrm{.}000$

Common stock $210\mathrm{.}000\mathrm{.}000$

Deficit $(152\mathrm{.}500\mathrm{.}000)$

$492\mathrm{.}500\mathrm{.}000$

In the reorganization plan, the reorganization value is $$350,000,000.$ Prepetition liabilities consist of Accounts payable amounting to $$65,000,000$ and notes payable at Kasuari Bank amounting to $$240,000,000.$ The reorganization plan resulted in the following debt and share negotiation agreements:

Accounts payable $($prepetition$)$ : Will be paid $75\%$

Notes payable $($prepetition$)$ : Will be replaced by $$92,000,000$ notes payable and $$100,000,000$ common stock

Common stock : Will be replaced with $$75,000,000$ of new company common stock.

Requested:

a$.$ Determine whether Poster Inc. has the right to use fresh start reporting.

b$.$ Prepare the adjusting journal entries necessary to prepare the balance sheet after the reorganization.