The Larisa Company is coming out of reorganization with the following accounts:

The company's assets have a $760,000 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 that is necessary to adjust the company's records to fresh start accounting?

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Book Value Fair Value $80,000 200,000 300,000 300,000 330,000 20,000 (70,000) Receivables .._..__ _ . . . $90,000 210,000 400,000 300,000 Buildings Liabilities Common sto Retained earnings (deficit) .