*Financial Reorganization
the Following Shareholders' Equity Accounts Were Reported by India

*Financial reorganization
The following shareholders' equity accounts were reported by India Inc. at December 31, 2020. Common shares, no par value, 10,000 shares outstanding..................... $\$ 720,000$
Retained earnings (deficit) ...................................................................... $( \$ 247,000 )$ A financial reorganization was approved. Equipment is to be written down by $ 68,000, and inventory increased by $ 5,200.
Instructions
Prepare the required journal entries for the financial reorganization.