Problem $14-19($Algo$)$ Convertible bonds; induced conversion; bonds with detachable warrants $[$LO$14-5]$

Bradley$-$Link$$s December $31,2021,$ balance sheet included the following items:

Long$-$Term Liabilities $($$ in millions$)$

$9\mathrm{.}0\%$ convertible bonds, callable at $104$ beginning in $2022,$

due $2025($net of unamortized discount of $$5)[$note $8]$ $$195$

$9\mathrm{.}8\%$ registered bonds callable at $107$ beginning in $2031,$

due $2035($net of unamortized discount of $$1)[$note $8]66$

Shareholders$$ Equity $6$

Equity$$stock warrants

Note $8$: Bonds $($in part$)$

The $9\mathrm{.}0\%$ bonds were issued in $2008$ at $94\mathrm{.}0$ 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 $9\mathrm{.}8\%$ bonds were issued in $2012$ at $105$ 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 $2022.$

On January $3,2022,$ 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 $2022,40\%$ 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 $$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 $2022.$

$4.$ 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 $90\%$ of the convertible bonds in January $2022.$

$5.$ Prepare the journal entry to record the exercise of the warrants in December $2022.$