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Bradley-Link's December 31. 201B, balance sheet included the following items: Long-Tern Liabilities 1:131:25} 8.0% convertible bonds, callable at. 1132 beginning in 2019, $146 due 2022

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Bradley-Link's December 31. 201B, balance sheet included the following items: Long-Tern Liabilities 1:131:25} 8.0% convertible bonds, callable at. 1132 beginning in 2019, $146 due 2022 {net of unamttized discount of $4) [note B] 11.0% registered bonds callable at. 105 beginning in 2028, 52 due 2032 {net of unamortized discount of 32) [note 3] Ehnholdern' Equity 5 Equityhstock warrants Note 8: Bonds {In part} The 8.0% bonds were issued in 2005 at 96.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1.000 bond is convertible into 50 shares of the Company's no par common stock. The 11.0% bonds were issued In 2009 at 103 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1.000 bond was issued with 50 detachable stock warrants. each of which entitles the holder to purchase one share of the Company's no par common stock for $30. beginning 2019. On January 3, 2019. when Bradley-Link's common stock had a market price of $37 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 $42 In December of 2019. 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 2005 and 2009. 2. Prepare thejournal entry to record (book value method} the conversion of 90% of the convertible bonds in January 2019 and the retirement of the remainder. 3. Assume BradleyLink induced conversion by oerlng $120 cash for each bond converted. Prepare the journal entry to record [book value method} the conversion of 90% of the convertible bonds in January 2019. 4. Assume Bradley-Link induced conversion by modifying the conversion ratio to exchange 55 shares for each bond rather than the 50 shares provided In the contract. Prepare thejournal entry to record {book value method] the conversion of 90% of the convertible bonds in January 2019. 5. Prepare thejournal entry to record the exercise of the warrants in December 2019

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