Bradley-Links December 31, 2016, balance sheet included the following items: Long-Term Liabilities ($ in millions) 7.0% convertible bonds, callable at 102 beginning in 2017, due 2020 (net of unamortized discount of $4) [note 8] $196 11.0% registered bonds callable at 105 beginning in 2026, due 2030 (net of unamortized discount of $2) [note 8] 65 Shareholders Equity 5 Equitystock warrants Note 8: Bonds (in part) The 7.0% bonds were issued in 2003 at 98.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of the Companys no par common stock. The 11.0% bonds were issued in 2007 at 103 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 Companys no par common stock for $25, beginning 2017. On January 3, 2017, when Bradley-Links 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 2017, 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 2003 and 2007. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

2. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2017 and the retirement of the remainder. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

3. 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 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

4. 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 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

5. Prepare the journal entry to record the exercise of the warrants in December 2017