The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value Fair Value Receivables Inventory $ 85,000 205,000 $ 100,000 220,000 Buildings 305,000 410,000 Liabilities 305,000 305,000 Additional paid-in capital Common stock Retained earnings (deficit) 335,000 30,000 (75,000) The company's assets have a $775,000 reorganization value. As part of the reorganization, the company's owners transferred 75 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.) View transaction list Journal entry worksheet 1 2 Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit.