Bradley-Link's December 31, 2021, balance sheet included the following items: ($ in millions) $294 Long-Term Liabilities 10.0% convertible bonds, callable at 105 beginning in 2022, due 2025 (net of unamortized discount of $6) [note 8] 10.8% registered bonds callable at 108 beginning in 2031, due 2035 (net of unamortized discount of $2) [note 8] Shareholders' Equity Equity-stock warrants 67 7 Note 8: Bonds (in part) The 10.0% bonds were issued in 2008 at 96.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of the Company's no par common stock. The 10.8% bonds were issued in 2012 at 106 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 30 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 35 shares for each bond rather than the 30 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. 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 288 12 Discount on bonds payable Convertible bonds payable 300 2 2 Cash 71 x 3 Discount on bonds payable Bonds payable Equity - stock warrants 67 X 7 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 Credit Event 1 Debit 270.0 1 General Journal Convertible bonds payable Discount on bonds payable Common stock 8.1 x 261.9 X N N 30.0 2.4 x Convertible bonds payable Loss on early extinguishment Discount on bonds payable Cash 0.9 X 31.5 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 Event Debit Credit No 1 1 270.0 37.8 x General Journal Convertible bonds payable Conversion expense Discount on bonds payable Common stock Cash 8.1 x 261.9 37.8 x Required 1 Required 2 Required 3 Required 4 Required 5 Assume Bradley-Link induced conversion by modifying the conversion ratio to exchange 35 shares for each bond rather than the 30 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 General Journal Debit Credit 1 270.0 37.8 X Convertible bonds payable Conversion expense Discount on bonds payable Common stock 8.1 x 299.7 X 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 18.0 X 2.8 Equity - stock warrants Common stock 20.8 x