Answer:
1) Determine the total bond interest expense to be recognized.
Total bond interest expense over life of bonds:
Amount repaid:    	
8 payments of $24,225:          	$193,800    
Par value at maturity:                 $570,000    
Total repaid:                                   $763800 (193,800 + 570,000)  
Less amount borrowed:         $508050    
Total bond interest expense:	$255750 (763800 - 508,050) 
2)Prepare a straight-line amortization table for the bonds' first two years.
Semiannual Interest Period End;	Unamortized Discount;	Carrying Value	 
01/01/2019                                      61,950                           508,050  
06/30/2019                                      54,206                          515,794  
12/31/2019                                       46,462                         523,538  
06/30/2020                                       38,718                        531,282  
12/31/2020                                         30,974                          539,026
3) Record the interest payment and amortization on June 30:
June 30            Bond interest expense, dr                         31969  	
                        Discount on bonds payable, Cr     (61950/8)  7743.75	
                                         Cash, Cr                     ( 570000*8.5%/2)  24225  
4) Record the interest payment and amortization on December 31:
Dec 31                 Bond interest expense, Dr               31969  	
                            Discount on bonds payable, Cr  7744  
                                     Cash, Cr                                24225