Twixt Corp. issued $5,250,000 of convertible bonds on 1 January for $5,033,000 cash. The bond had the following terms:

Bonds mature in five years time. Annual interest, 6%, is paid each 31 December. Bonds are convertible to 525,000 common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.

Current market interest rates are 7%.

(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.)

4. Not available in Connect.