2.3. 4. 5.Bradley-Links December 31. 201B, balance sheet included the following items: Long-Tern Liabilities 1:131:25} 8.0% convertible bonds, callable at. 1132 beginning in 2019, $146due 2022 {net of unamttized discount of $4) [note B] 11.0% registered bonds callable at. 105 beginning in 2028, 52 due 2032 {net of unamortized discount of 32) [note 3]Ehn?holdern’ Equity 5Equityhstock warrants Note 8: Bonds {In part}The 8.0% bonds were issued in 2005 at 96.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1.000bond is convertible into 50 shares of the Companys no par common stock. The 11.0% bonds were issued In 2009 at 103 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1.000bond was issued with 50 detachable stock warrants. each of which entitles the holder to purchase one share of the Company’s no parcommon stock for $30. beginning 2019. On January 3, 2019. when Bradley-Link’s common stock had a market price of $37 per share. Bradley-Link called the convertiblebonds to force conversion. 90% were converted: the remainder were acquired at the call price. When the common stock price reachedan all-time high of $42 In December of 2019. 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 2005 and 2009. 2. Prepare thejournal entry to record (book value method} the conversion of 90% of the convertible bonds in January 2019 and theretirement of the remainder. 3. Assume BradleyLink induced conversion by o?erlng $120 cash for each bond converted. Prepare the journal entry to record [bookvalue method} the conversion of 90% of the convertible bonds in January 2019. 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 thejournal entry to record {book value method] the conversion of 90% of the convertiblebonds in January 2019. 5. Prepare thejournal entry to record the exercise of the warrants in December 2019.
Bradley-Links
Plagiarism-free and delivered on time!
We are passionate about delivering quality essays.
Our writers know how to write on any topic and subject area while meeting all of your specific requirements.
Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.