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

	Book Value		Fair Value
Receivables	$	84,000	$	98,000
Inventory		204,000		218,000
Buildings		304,000		408,000
Liabilities		304,000		304,000
Common stock		334,000
Additional paid-in capital		28,000
Retained earnings (deficit)		(74,000)

The company's assets have a $774,000 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 transaction/event, select "No journal entry required" in the first account field.)