Twixt Corp. issued $$5,180,000$ of convertible bonds on $1$ January for $$4,965,000$ cash. The bond had the following terms:

Bonds mature in five years$$ time.

Annual interest, $9\%,$ is paid each $31$ December.

Bonds are convertible to $518,000$ common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.

Current market interest rates are $10\%.$

Required:

$1.$ Assign a value to the liability and the equity portions of the bond. $($Do not round intermediate calculations. Round your final answers to the nearest whole 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. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.$)$

$3.$ Provide a schedule to show interest expense and amortization of the liability over the life of the bond. $($Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cell blank. Be certain to enter $"0"$ wherever required.$)$Required:

Assign o value to the lisbility and the equity portions of the bond. $($Do not round Intermedlate calculations. Round your final

answers to the nearest whole dollar amount.$)$

Provide the joumsl 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. Do not round intermedlate calculations. Round your final answers to the nearest whole dollar

amount.$)$

Journal entry worksheet

$1$

Record the entry for issuance of bonds.

Note: Enter debits befare credits.

Provide a schedule to show interest expense and amortization of the lisbility over the life of the bond. $($Do not round Intermedlate

calculations. Round your final answers to the nearest whole dollar amount. Leave no cell blank. Be certaln to enter $"0"$ wherever

required.$)$