The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value Fair Value Receivables $ 95,000 $ 120,000 Inventory Buildings 215,000 240,000 315,000 430,000 Additional paid-in capital Liabilities Common stock Retained earnings (deficit) 315,000 315,000 345,000 50,000 (85,000) The company's assets have a $835,000 reorganization value. As part of the reorganization, the company's owners transferred 70 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. > View transaction list Journal entry worksheet