Event #7: Accounting for Liabilities &Bonds As a way to finance new developments, Shaolin Clothing obtained authorization to issue: i. Bond A: a $8 million 20-year, 10% bonds with interest payable semiannually on March 1 and September 1, and ii. Bond B: a $12 million 10-year, 6% bonds with interest payable semiannually on June 1 and December 1. a) i. If the market interest rate (i.e. effective interest rate) is 8%, Determine the market price of Bond A. Determine the market price of Bond B. Bond A Bond B Present value of face value of Bond Present value of all periodic receives Market price of the bond b b) Journal the following activities: i. Issuance of Bond A on March 1, 2016. Issuance of Bond B on June 1, 2016. 11. The Shaolin Clothing Company General Journal March 1 - June 30, 2016 Account Title & Explanation Date Debit Credit