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

	Book Value			Fair Value
Receivables	$	94,000		$	118,000
Inventory		214,000			238,000
Buildings		314,000			428,000
Liabilities		314,000			314,000
Common stock		344,000
Additional paid-in capital		48,000
Retained earnings (deficit)		(84,000	)

The company's assets have a $834,000 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.)