Twixt Corp. issued $5,120,000 of convertible bonds on 1 January for $4,907,000 cash. The bond had the following terms:

• Bonds mature in five years time.
• Annual interest, 8%, is paid each 31 December.
• Bonds are convertible to 512,000 common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.

Current market interest rates are 9%. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Assign a value to the liability and the equity portions of the bond. (Round time value factor to 5 decimal places and final answers to the nearest dollar amount.)

2. Provide the journal entry to record issuance of the bond. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Round your final answers to the nearest dollar amount.)

3. Provide a schedule to show interest expense and amortization of the liability over the life of the bond. (Round time value factor to 5 decimal places. Round your final answers to the nearest dollar amount. Leave no cell blank. Be certain to enter "0" wherever required.)