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10 Bradley-Link's December 31, 2018, balance sheet included the following items Long-Term Liabilities (s in 325 onts 7.0% convertible bonds, callable at 102 beginning in

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10 Bradley-Link's December 31, 2018, balance sheet included the following items Long-Term Liabilities (s in 325 onts 7.0% convertible bonds, callable at 102 beginning in 2019, due 2822 (net of unamortized discount of $3) [note 8] 11.0% registered bonds callable at 195 beginning in 2928, due 2832 (net of unamortized discount of $1) [note 8) millions) 247 56 eBook Shareholders Equity Equity-stock warrants Phint ReferencesNote 8: Bonds (in part) The 70% bonds were issued in 2005 at 98 O to yield 10% Interest is paid sem annually on June 30 and December 31 Each St bond is convertible into 50 shares of the Company's no par common stock 00 The 110% bonds were issued in 2009 et 103 to yield 0% Interest is paid semiannually on June 30 and December 31 Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitles the holder to purchase one share of the Company's no par common stock for $20, beginning 2019 stock had a market price of $27 per share, Bradley-Link called the convertible On Januery 3, 2019, when Bradley Link's c bonds to force conversion 90% were converted!the remainder were acquired at the call price when the common stock price reached an all-time high of $32 in December of 2019, 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 thejournal entry to record ibook 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 $130 cosh for each bond converted Prepare the journal entry to record (book value method) the conversion of 90% ofthe convertible bonds n January 2019. 4. Assume Brad ey-Link induced conversion by modifying the converslon ratio to exchange 55 shares for each bond rather than the Prev10 of 17 Next>

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