Chapter 13 Homework Problems 0 Saved Help Save 3. Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Problem 13-38 (Algo) (LO 13-10) The Larisa Company is exiting bankruptcy reorganization with the following account balances: 625 pmne Net Book Value Fair Value Receivables $ 100,000 $ 130,000 Inventory 220,000 250,000 Buildings 320,000 440,000 Liabilities 820,000 820,000 Common stock 150,000 Additional paid-in capital 60,000 Retained earnings (deficit) (390,000) Larisa Company's assets have a $870,000 reorganization value' As part of the reorganization plan, the company's owners transferred 80 percent of the outstanding stock to the creditors in exchange for a $500,000 reduction in the liabilities. Required: Prepare the journal entry (or entries) necessary to adjust the company's records to fresh start accounting. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 0 Answer is not complete. A 1 Receivables Inventory Buildings Goodwill 006