My professor gave another problem; same concept but different numbers. He did provide us with a sample with questions and answers. Where I am confused is how do I calculate to get to the millions, how do I get the 150 million. I've read the book and I just can't seem to get it. ugghhhh please help!

Convertible Bonds?2003 issue

Cash: (98.0% $150 million) = $147

Bradley-Link's December 31, 2016, balance sheet included the following items: Long-Term Liabilities 9.0% convertible bonds, callable at 103 beginning in 2017, due 2020 (net of unamortized discount of $3) [note 8] 11.0% registered bonds callable at 106 beginning in 2026, due 2030 (net of unamortized discount of $2) [note 8] Shareholders' Equity Equitystock warrants ($ in millions) $147 60 5 Note 8: Bonds (in part) The 9.0% bonds were issued in 2003 at 98.0 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 2007 at 104 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 $35, beginning 2017. On January 3, 2017, when Bradley-Link's common stock had a market price of $42 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 $47 in December of 2017, 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 2003 and 2007. (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).) Event 1 General Journal Debit Cash Credit 147 Discount on bonds payable 3 Convertible bonds payable 2 150 Cash 64 Discount on bonds payable 3 Bonds payable 62 EquityStock warrants 5 2. Prepare the journal entry to record (book value method) the conversion of 80% of the convertible bonds in January 2017 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).) Event 1 General Journal Convertible bonds payable Debit Credit 135.0 Discount on bonds payable 2.7 Common stock 2 Convertible bonds payable Loss on early extinguishment Discount on bonds payable Cash 132.3 15.0 0.8 0.3 15.5 3. Assume Bradley-Link induced conversion by offering $160 cash for each bond converted. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2017. (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).) Event 1 General Journal Convertible bonds payable Conversion expense Debit Credit 135.0 19.2 Discount on bonds payable 2.7 Common stock 132.3 Cash 19.2 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 the journal entry to record (book value method) the conversion of 80% of the convertible bonds in January 2017. (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).) Event 1 General Journal Convertible bonds payable Conversion expense Discount on bonds payable Common stock Debit Credit 135.0 25.2 2.7 157.5 5. Prepare the journal entry to record the exercise of the warrants in December 2017. (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).) Event 1 General Journal Cash EquityStock warrants Common stock Explanation: 1-5 1. Convertible Bonds2003 issue Cash: (98.0% $150 million) = $147 Bonds with Warrants2007 issue Cash: (104% $62 million) = $64.48 2. Convertible bonds payable: (90% $150 million) = $135.0 Discount on bonds payable: (90% $3 million) = $2.7 Convertible bonds payable: (10% $150 million) = $15.0 Discount on bonds payable: (10% $3 million) = $0.30 Cash: (103% 10% $150 million) = $15.45 3. Convertible bonds payable: (90% $150 million) = $135.0 Conversion expense: (80% 150,000 bonds $160) = $19.20 Discount on bonds payable: (90% $3 million) = $2.7 Cash: (80% 150,000 bonds $160) = $19.20 4. Convertible bonds payable: (90% $150 million) = $135.0 Conversion expense: (90% [150,000 (55 - 50) shares] $42) = $25.20 Discount on bonds payable: (90% $3 million) = $2.7 5. Cash: (40% 62,000 50 warrants $35) = $43.4 Equitystock warrants: (40% $5 million) = $2.0 Debit Credit 43.4 2.0 45.4 Bradley-Link's December 31, 2016, balance sheet included the following items: Long-Term Liabilities 11.0% convertible bonds, callable at 102 beginning in 2017, due 2020 (net of unamortized discount of $5) [note 8] 11.0% registered bonds callable at 105 beginning in 2026, due 2030 (net of unamortized discount of $1) [note 8] Shareholders' Equity Equitystock warrants ($ in millions) $245 68 6 Note 8: Bonds (in part) The 11.0% bonds were issued in 2003 at 98.0 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 2007 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 2017. On January 3, 2017, 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 2017, 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 2003 and 2007. (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).) Journal Entry Worksheet Record the bond issue that was originally sold in 2003. Record the bond issue that was originally sold in 2007 Event 1 General Journal Cash Discount on bonds payable Convertible bonds payable 2 Debit Credit 245 5 250 Cash Discount on bonds payable Bonds payable EquityStock warrants 6 2. Prepare the journal entry to record (book value method) the conversion of 80% of the convertible bonds in January 2017 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).) Event General Journal Debit Credit 1 Convertible bonds payable Loss on early extinguishment Discount on bonds payable Cash 2 Convertible bonds payable Discount on bonds payable Common stock 3. Assume Bradley-Link induced conversion by offering $170 cash for each bond converted. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2017. (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).) Event 1 General Journal Debit Credit Convertible bonds payable Conversion expense Discount on bonds payable Common stock Cash 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 the journal entry to record (book value method) the conversion of 80% of the convertible bonds in January 2017. (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).) Event 1 General Journal Debit Credit Convertible bonds payable Conversion expense Discount on bonds payable Common stock 5. Prepare the journal entry to record the exercise of the warrants in December 2017. (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).) Event 1 General Journal Cash EquityStock warrants Debit Credit Common stock