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

Book Value Fair value

Receivables $ 103,000 $ 136,000

Inventory 223,000 256,000

Buildings 323,000 446,000

Liabilities 323,000 323,000

Common stock 353,000

Additional paid-in capital 66,000

Retained earnings(deficit) ( 93,000)

The company's assets have a $873,000 reorganization value. As part of the reorganization, the company's owners transferred 80 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 transactions/event, select " No journal entry required " in the first account field.)

View transaction list view general list

Record the assets and liabilities after reconstruction.

Transaction General Journal Debit Credit

Enter debits before credits

done clear entry record entry