Record the entry to adjust asset values to fair value

Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit

The Larisa Company is exiting bankruptcy reorganization with the following accounts: Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) Book Value $ 82,000 202,000 302,000 302,000 332,000 24,000 (72,000) Fair Value $ 94,000 214,000 404,000 302,000 The company's assets have a $762,000 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.)