please answer with correct and detailed calculations and explanations. make sure supporting statements are also provided for each step and calculation.

Problem 13-38 (Algo) (LO 13-10) The Larisa Company is exiting bankruptcy recrganization with the following account balances: Met Book Value Fair Value Receivables % 181,080 % 132,00 Inventory 221,088 252,088 Buildings 321,099 442,009 Liabilities 821,000 821,008 Common stock 151,088 Additional paid-im capital 62,080 Retained earnings (deficit) (391, 088) Larisa Company's assets have a $871,000 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. Answer is not complete. T ey o] wwme| | Retained earnings 391,000 @