The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value Receivables $ 86,000 Fair Value $ 102,000 Inventory 206,000 222,000 Buildings 306,000 Liabilities 306,000 412,000 306,000 Additional paid-in capital Common stock Retained earnings (deficit) 336,000 32,000 (76,000) The company's assets have a $776,000 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 (or entries) 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.) View transaction list Journal entry worksheet 1 2 Record the entry to adjust asset values to fair value. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet