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Bradley - Link's December 3 1 , 2 0 2 1 , balance sheet included the following items: Long - Term Llabilities 9 . 6

Bradley-Link's December 31,2021, balance sheet included the following items:
Long-Term Llabilities
9.6% convertible bonds, callable at 101 beginning in 2022, due 2025(net
of unamortized discount of $2)[note 8]
10.4% registered bonds callable at 104 beginning in 2031, due 2035(net
of unamortized discount of $1)[note 8]
Shareholders' Equity
Equity-stock warrants
($ in millions)
$198
49
4Note 8: Bonds (In part)
The 9.6% bonds were issued in 2008 at 97.5 to yleld 10%. Interest is pald semlannually 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 2012 at 102 to yleld 10%. Interest is pald semlannually 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 2022.On January 3,2022, 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 were acquired at the call
price. When the common stock price reached an all-time high of $37 in December of 2022,40% of the warrants
were exercised.
Required:
Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2005
and 2012.
Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in
January 2022 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 2022.
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 2022.Prepare the journal entry to record the exercise of the warrants in December 2022.
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