The Larisa Company is exiting bankruptcy reorganization with the following accounts:

The company's assets have a $873,000 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 companys records to fresh start accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) Book Value $ 103,000 223,000 323,000 323,000 353,000 66,000 (93,000) Fair Value $ 136,000 256,000 446,000 323,000 Journal entry worksheet 1 2 > Record the entry to adjust asset values to fair value. Note: Enter debits before credits. Transaction General Journal Debit Credit 1