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Bradley - Link's December 3 1 , 2 0 2 4 , balance sheet included the following items: Note 8 : Bonds ( in part

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Bradley-Link's December 31,2024, balance sheet included the following items:
Note 8: Bonds (in part)
The 9.6% bonds were issued in 2011 at 97.5 to yield 10%. Interest is paid semiannually on June 30 and December 31.
Each $1,000 bond is convertible into 40 shares of the Company's no par common stock.
The 10.4% bonds were issued in 2015 at 102 to yield 10%. Interest is paid semiannually on June 30 and December 31.
Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitles the holder to purchase one
share of the Company's no par common stock for $25, beginning 2025.
On January 3,2025, when Bradley-Link's common stock had a market price of $32 per share, Bradley-Link called the
convertible bonds to force conversion. Ninety percent were converted; the remainder were acquired at the call price.
When the common stock price reached an all-time high of $37 in December of 2025,40% of the warrants were
exercised.
Required:
Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2011 and
Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in
January 2025 and the retirement of the remainder.
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 2025.
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 2025.
Prepare the journal entry to record the exercise of the warrants in December 2025.
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