Bradley-Links December 31, 2021, balance sheet included the following items: Long-Term Liabilities ($ in millions) 11.0% convertible bonds, callable at 101 beginning in 2022, due 2025 (net of unamortized discount of $4) [note 8] $196 11.8% registered bonds callable at 104 beginning in 2031, due 2035 (net of unamortized discount of $1) [note 8] 51 Shareholders Equity 6 Equitystock warrants Note 8: Bonds (in part) The 11.0% 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 Companys no par common stock. The 11.8% bonds were issued in 2012 at 102 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 2022. On January 3, 2022, 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 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 $140 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.

Bradley-Link's December 31, 2021, balance sheet included the following items: ($ in Long-Term Liabilities millions) $196 11.0% convertible bonds, callable at 101 beginning in 2022, due 2025 (net of unamortized discount of $4) [note 8] 11.8% registered bonds callable at 104 beginning in 2031, due 2035 (net of unamortized discount of $1) [note 8] Shareholders' Equity Equity-stock warrants 51 6 Note 8: Bonds (in part) The 11.0% bonds were issued in 2008 at 97.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,0 bond is convertible into 40 shares of the Company's no par common stock. The 11.8% bonds were issued in 2012 at 102 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 $140 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. Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $520 million on January 1, 2021, for $460,353,920. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. 1. What would be the net amount of the liability Myriad would report in its balance sheet at December 31, 2021? 2. What would be the amount related to the bonds that Myriad would report in its income statement for the year ended December 31, 2021? 3. What would be the amount(s) related to the bonds that Myriad would report in its statement of cash flows for the year ended December 31, 2021? (Round your answers to the nearest whole dollar.) 1. Net liability reported Interest Expense 2. 3. Amount reported in Statement of Cash flows Financing Activities Investing Activities Operating Activities