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

	Book Value			Fair Value
Receivables	$	101,000		$	132,000
Inventory		221,000			252,000
Buildings		321,000			442,000
Liabilities		321,000			321,000
Common stock		351,000
Additional paid-in capital		62,000
Retained earnings (deficit)		(91,000	)

The company's assets have a $871,000 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 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.)