Answer:
discount on BP   8,000 debit
cash                592,000 debit
 bond payable                       600,000 credit
-to record issuance of the bonds--
interest expense     15,416.67 debit
   interest payable                     15,000      credit
   discount on BP                           416.67 credit
--to record year-end adjustment entry--
interest payable   15,000      debit
interest expense   3,083.33 debit
   cash                                       18,000    credit
   Discount on BP                         416.67 credit
-to record first interest payment to bondholders--
Explanation:
proceeds from the bonds:  592,000
face value of the bonds.    (600,000)
discount on BP                        (8,000)
We amortize over the life of the bond in equal parts:
8,000 / 20 payment (10years x 2 payment per year) = 500
interest accrued from August 1st to December 31th:
face value x rate x time accrued
600,000 x 6% x 5/12 = 15,000
accrued proportional amortization
amortizationfor 6 months x accrued month
from Augsut 1st to December 31th
500 x 5/6 = 416.67
February 1st payment:
600,000 x 6% x 1/12 = 3,000 interest expense
cash outlay:
600,000 x 6% x 6/12 = 18,000
amortization 500 - 416.67 = 83.33