A business borrowed $200,000 on January 1, 2019 to be repaid on January 1, 2022. On January 1, 2019, the business received an amount equal to $200,000 less discounted interest at an annual rate of 11.5%, which is the market rate. The company closes its books every December 31. a. Prepare the journal entry for the debtor on January 1, 2019. b. Prepare the journal entry on December 31, 2020 related to this debt. Exercise number 5. Suppose that the company from the previous exercise number 4 received the total sum of $200,000 on January 1, 2019 and promised to pay off the loan by making three equal annual payments (January 1, 2020, 2021 and 2022) based on at an interest rate of 11.5%. Prepare the journal entry to record the second of the three annual payments.