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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
BradleyLink's December balance sheet included the following items:
Note : Bonds in part
The bonds were issued in at to yield Interest is paid semiannually on June and December
Each $ bond is convertible into shares of the Company's no par common stock.
The bonds were issued in at to yield Interest is paid semiannually on June and December
Each $ bond was issued with detachable stock warrants, each of which entitles the holder to purchase one
share of the Company's no par common stock for $ beginning
On January when BradleyLink's common stock had a market price of $ per share, BradleyLink 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 alltime high of $ in December of of the warrants were
exercised.
Required:
Prepare the journal entries that were recorded when each of the two bond issues was originally sold in and
Prepare the journal entry to record book value method the conversion of of the convertible bonds in
January and the retirement of the remainder.
Assume BradleyLink induced conversion by offering $ cash for each bond converted. Prepare the journal
entry to record book value method the conversion of of the convertible bonds in January
Assume BradleyLink induced conversion by modifying the conversion ratio to exchange shares for each bond
rather than the shares provided in the contract. Prepare the journal entry to record book value method the
conversion of of the convertible bonds in January
Prepare the journal entry to record the exercise of the warrants in December
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