Bradley-Link’s December 31, 2018, balance sheet included thefollowing items:

Long-Term Liabilities	($in millions)
10.0%convertible bonds, callable at 105 beginning in 2019, due 2022 (net of unamortized discount of $4) [note 8]	$296
11.0% registeredbonds callable at 108 beginning in 2028, due 2032 (net of unamortized discount of $2) [note 8]	58
Shareholders’ Equity	7
Equity—stockwarrants

Note 8: Bonds (in part)
The 10.0% bonds were issued in 2005 at 98.0 to yield 10%. Interestis paid semiannually on June 30 and December 31. Each $1,000 bondis convertible into 30 shares of the Company’s no par commonstock.

The 11.0% bonds were issued in 2009 at 106 to yield 10%. Interestis paid semiannually on June 30 and December 31. Each $1,000 bondwas issued with 30 detachable stock warrants, each of whichentitles the holder to purchase one share of the Company’s no parcommon stock for $25, beginning 2019.

On January 3, 2019, when Bradley-Link’s common stock had a marketprice of $32 per share, Bradley-Link called the convertible bondsto force conversion. 90% were converted; the remainder wereacquired at the call price. When the common stock price reached anall-time high of $37 in December of 2019, 40% of the warrants wereexercised.

Required:
1. Prepare the journal entries that were recorded wheneach of the two bond issues was originally sold in 2005 and2009.
2. Prepare the journal entry to record (book valuemethod) the conversion of 90% of the convertible bonds in January2019 and the retirement of the remainder.
3. Assume Bradley-Link induced conversion byoffering $140 cash for each bond converted. Prepare the journalentry to record (book value method) the conversion of 90% of theconvertible bonds in January 2019.
4. Assume Bradley-Link induced conversion bymodifying the conversion ratio to exchange 35 shares for each bondrather than the 30 shares provided in the contract. Prepare thejournal entry to record (book value method) the conversion of 90%of the convertible bonds in January 2019.
5. Prepare the journal entry to record theexercise of the warrants in December 2019.

rev: 02_06_2018_QC_CS-116686