The Larisa Company is exiting bankruptcy reorganization with the following accounts: Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) View transaction list The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. Journal entry worksheet 1 Book Value Fair Value $ 80,000 200,000 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.) 2 300,000 300,000 330,000 20,000 (70,000) Note: Enter debits before credits. Transaction $ 90,000 210,000 400,000 300,000 Record the entry to adjust asset values to fair value. General Journal Dobit Credit >

The Larisa Company is exiting bankruptcy reorganization with the following accounts: The company's assets have a $760,000 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.)