On September30,2020, PivotCo. issued$1million,6%,5-year convertible bonds maturing on September30,2025,with semi-annual coupon payments on March 31 and September 30. Each $1,000bond can be converted into 110no par value common shares. Gross proceeds on issuance were $1,150,000. Without the conversion feature, the bond would be expected to yield 4%annually.

Pivot's year-end is December 31. On February22,2023the shares of Pivottraded at $33each on this day.

Required

a.Determine how Pivotshould allocate the $1,150,000 proceeds into its components

b.Prepare the journal entries for fiscal 2020

c.Prepare the journal entry to record the first coupon payment on March 31, 2021(assuming reversing entries are not used)

d.Prepare the fiscal 2021 year-end entries related to this bond.e.Prepare the journal entry to record the first coupon payment on March 31, 2022(assuming reversing entries are not used)