Bradley-Link's December 31, 2024, balance sheet included the following items: Note 8: Bonds (in part) The 10.0% bonds were issued in 2011 at 970 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 per common stock. The 10.8% bonds were issued in 2015 at 102 10 yeld 10%. Interest is paid semiannually on June 30 and December 31 . Eoch $1,000 bond wos issued with 50 detachable stock worrants, each of which entilies the holder to purchase one share of the Compony's no par common stock for $30, beginning 2025 . On January 3, 2025, when Bradley-Link's common stock hod a morket price of $37 per share, Bradiey-Link called the convertible bonds to force conversion. Ninety percent were converted; the remainder were acquired ot the coll price. When the common stock price reached on all. me high of $38 in December of 2025,40% of the warrants were exercised. Required: 1. Prepace the joum al entres thot were recorded when each of the swo bond issues wos originally sold in 2011 and 2015 2. Prepare the joumal entry to record (book value method) the conversion of 903 s the convertible bonds in January 2025 and the ietrement of the remainder: 3. As:ump bracley:Lirk induced conversion by offering $160 cosh for eoch bond converted. Prepore the journat entry to record On January 3, 2025, when Bradley-Link's common stock had a market price of \$37 per share, Bradley-Link called the convertible bonds to force conversion. Ninety percent were converted; the remainder were acquired at the call price. When the common stock price reached an all-time high of $38 in December of 2025,40% of the warrants were exercised. Required: 1. Prepare the journal entries that were recorded when each of the two bond issues wos originally sold in 2011 and 2015. 2. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2025 and the retirement of the remainder. 3. Assume Bradley-Link induced conversion by offering $160 cash for each bond converted. Prepare the joumal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2025 . 4. Assume Brodley-Link induced conversion by modifying the conversion ratio to exchange 55 shares for each bond rather than the 50 shares provided in the controct. Prepare the joumal entry to record (book value method) the conversion of 90% of the convertible bonds in Jonuary 2025 5. Prepore the journal entry to record the exercise of the warrants in December 2025 Complete this question by entering your answers in the tabs below. Prepate the joumal entry to record the exercise of the warrants in December 2025. milions rounded to 1 decmal place (li.e, 5,500.000 should be entered as 5.5 ) Prepare the joumal entry to record the exercise of the warrants in December 2025. Note: If no entry is required for a transaction/event, select "No fournal entry required" in the first account field. Enter your answers in militions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)
