The Larisa Company is exiting bankruptcy reorganization with the following accounts: \begin{tabular}{lcc} & Book Value & Fair Value \\ Receivables & $97,000 & $124,000 \\ Inventory & 217,000 & 244,000 \\ Buildings & 317,000 & 434,000 \\ Liabilities & 317,000 & 317,000 \\ Common stock & 347,000 & \\ Additional paid-in capital & 54,000 & \\ Retained earnings (deficit) & (87,000) & \\ \hline \end{tabular} The company's assets have a $867,000 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.) Record the entry to adjust asset values to fair value. Journal entry worksheet Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit