P20.3 Salty Hospital issued $500,000 (face value) of 6 percent, ten year bonds at 102.3 percent and accrued interest on October 1, 20x1. Bond issue costs amounted to 16,100. The bonds dated May 1, 20x1, pay interest semiannually on May 1 and November 1. The hospitals fiscal year ends on December 31. On January 1, 20x2, the hospital reacquires 20 percent of these bonds by purchase in the open market at 101 percent and accrued interest, with brokerage and their reacquisition costs of $260 being paid.

Required: (1) Prepare a chart showing all entries for all matters relating to this bond issue through December 31, 20x1. (2) Indicate how all matters relating to this bond issue should be presented in the hospitals 20x1 financial statements. (3) Prepare the necessary entry to record the reacquisition of 20 percent of these bonds on January 1, 20x2. (4) Compute the amount of bond interest expense for January 20x2.