Bradley$-$Link's December $31,2021,$ balance sheet included the following items:

Long$-$Term Llabilities

$9\mathrm{.}6\%$ convertible bonds, callable at $101$ beginning in $2022,$ due $2025($net

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

$10\mathrm{.}4\%$ 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$

$49$

$4$Note $8$: Bonds $($In part$)$

The $9\mathrm{.}6\%$ bonds were issued in $2008$ at $97\mathrm{.}5$ 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 $10\mathrm{.}4\%$ 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 $2022.$