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: Note $8$: Bonds $($in part$)$ The $\backslash (11\mathrm{.}0\backslash \%\backslash )$ bonds were issued in $2008$ at $\backslash (96\mathrm{.}0\backslash )$ to yield $\backslash (10\backslash \%\backslash ).$ Interest is paid semiannually on June $30$ and December $31.$ Each $\backslash (\backslash$$ $1,000\backslash )$ bond is convertible into $40$ shares of the Company's no par common stock. The $\backslash (11\mathrm{.}8\backslash \%\backslash )$ bonds were issued in $2012$ at $103$ to yield $10\backslash \%.$ Interest is paid semiannually on June $30$ and December $31.$ Each $\backslash (\backslash$$ $1,000\backslash )$ bond was issued with $40$ detachable stock warrants, each of which entitles the holder to purchase one share of the Company's no par common stock for $\backslash (\backslash$$ $35\backslash ),$ beginning $2022.$On January $3,2022,$ when Bradley$-$Link's common stock had a market price of $\backslash (\backslash$$ $42\backslash )$ per share, Bradley$-$Link called the convertible bonds to force conversion. $\backslash (90\backslash \%\backslash )$ were converted; the remainder were acquired at the call price. When the common stock price reached an all$-$time high of $\backslash (\backslash$$ $47\backslash )$ in December of $\backslash (2022,40\backslash \%\backslash )$ of the warrants were exercised. Required: $1.$ Prepare the journal entries that were recorded when each of the two bond issues was originally sold in $2008$ and $2012.2.$ Prepare the journal entry to record $($book value method$)$ the conversion of $\backslash (90\backslash \%\backslash )$ of the convertible bonds in January $2022$ and the retirement of the remainder. $3.$ Assume Bradley$-$Link induced conversion by offering $\backslash (\backslash$$ $150\backslash )$ cash for each bond converted. Prepare the journal entry to record $($book value method$)$ the conversion of $\backslash (90\backslash \%\backslash )$ of the convertible bonds in January $2022.4.$ Assume Bradley$-$Link induced conversion by modifying the conversion ratio to exchange $45$ shares for each bond rather than the $40$ shares provided in the contract. Prepare the journal entry to record $($book value method$)$ the conversion of $\backslash (90\backslash \%\backslash )$ of the convertible bonds in January $2022.5.$ Prepare the journal entry to record the exercise of the warrants in December $2022.$