Bradley-Link's December 31, 2021, balance sheet included the following items: ($ in millions) $196 Long-Term Liabilities 7.0% convertible bonds, callable at 102 beginning in 2022, due 2025 (net of unamortized discount of $4) [note 8] 7.8% registered bonds callable at 105 beginning in 2031, due 2035 (net of unamortized discount of $2) [note 8] Shareholders' Equity Equity-stock warrants 65 5 Note 8: Bonds (in part) The 70% bonds were issued in 2008 at 97.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of the Company's no par common stock. The 7.8% bonds were issued in 2012 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 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: 1. Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2008 and 2012 2. 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. 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 2022. 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 2022. 5. Prepare the journal entry to record the exercise of the warrants in December 2022. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2008 and 2012. (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), rounded to nearest whole number). No Event General Journal Debit Credit 1 1 Cash Discount on bonds payable Convertible bonds payable 194 6 200 2 2 69 3 Cash Discount on bonds payable Bonds payable Equity - stock warrants 67 5 Required 1 Required 2 Required 3 Required 4 Required 5 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. (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)). No Event Debit Credit 1 1 180.0 General Journal Convertible bonds payable Discount on bonds payable Common stock OOO 3.6 176.4 2 2 20.0 0.8 Convertible bonds payable Loss on early extinguishment Discount on bonds payable Cash OOOO 0.4 20.4 Required 1 Required 2 Required 3 Required 4 Required 5 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. (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)). Show less A No Event Debit Credit 1 1 180.0 27.0 General Journal Convertible bonds payable Conversion expense Discount on bonds payable Common stock Cash 3.6 176.4 27.0 Required 1 Required 2 Required 3 Required 4 Required 5 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. (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)). Show less No Event Debit Credit 1 1 General Journal Convertible bonds payable Conversion expense Discount on bonds payable Common stock OOO 180.0 28.8 3.6 205.2 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record the exercise of the warrants in December 2022. (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)). No Event General Journal Debit Credit 1 1 Cash 29.6 % O 2.0 Equity - stock warrants Common stock 31.6 X