Bradley-Link's December 31, 2018, balance sheet included the following items:

Long-Term Liabilities ($ in millions)

9.6% convertible bonds, callable at 101 beginning in 2019, due 2022 (net

of unamortized discount of $2) [note 8].....................................................$198

10.4% registered bonds callable at 104 beginning in 2028, due 2032 (net

of unamortized discount of $1) [note 8].......................................................49

Shareholders' Equity Equity-stock warrants.................................................4

On January 3, 2019, when Bradley-Link's common stock had a market price of $32 per share, Bradley-Link called the convertible bonds to force conversion. 90% were converted; the remainder was acquired at the call price. When the common stock price reached an all-time high of $37 in December of 2017, 40% of the warrants were exercised.

Required:

1. Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2005 and 2009.

2. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019 and the retirement of the remainder.

3. Assume Bradley-Link induced conversion by offering $150 cash for each bond converted. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019.

4. Assume Bradley-Link induced conversion by modifying the conversion ratio to exchange 45 shares for each bond rather than the 40 shares provided in the contract. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019.

5. Prepare the journal entry to record the exercise of the warrants in December 2019.