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

	Book Value			Fair Value
Receivables	$	81,000		$	92,000
Inventory		201,000			212,000
Buildings		301,000			402,000
Liabilities		301,000			301,000
Common stock		331,000
Additional paid-in capital		22,000
Retained earnings (deficit)		(71,000	)

The company's assets have a $761,000 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.)

Journal entry worksheet Record the entry to adjust asset values to fair value. Note: Enter debits before credits. Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit. Note: Enter debits before credits