The Labrador Company is exiting bankruptcy reorganization with the following accounts:

	Book Value	Fair Value
Receivables	$80,000	$90,000
Inventory	200,000	210,000
Buildings	300,000	400,000
Liabilities	300,000	300,000
Common Stock	330,000
Additional paid-in capital	20,000
Retained Earnings (deficit)	(70,000)

The companys assets have a $760,000 reorganization value. As part of the reorganization, the companys owners transferred 80 percent of the outstanding stock to the creditors.

Prepare the journal entry that is necessary to adjust the companys record to fresh start accounting.