Check my work On September 30, 2020, Peace Frog International (PF) (a U.S.-based company) negotiated a two-year, 1,000,000 Chinose yuan loan from a Chinese bank at an interest rate of 2 percent per year. The company makes interest payments annually on September 30 and will repay the principal on September 30, 2022. PFI prepares U.S. dollar financial statements and has a December 31 yoar-end, Relevant exchange rates are as follows. U.S. Dollar per Chinese Date Yuan (CNY) September 30, 2020 $0.100 December 31, 2020 0.105 September 30, 2021 0.120 December 31, 2021 0.125 September 30, 2022 0.150 a. Prepare all journal entries related to this foreign currency borrowing, b. Toking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in US dollars on the loan in each of the three years 2020, 2021, and 2022 Complete this question by entering your answers in the tabs below. Required A Required B Prepare all journal entries related to this foreign currency borrowing. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Debit Crean View transaction list Journal entry worksheet 5 6 7 8 Book Record the first annual interest payment, record interest expense for the period 01/01/2021 - 09/30/2021, and record a foreign exchange gain or loss on the interest payable accrued at 12/31/2020. Print Note: Enter debits before credits cences Debit Credit Date General Journal 09/30/2021 interest expense Interest payable (CNY) Cash 2.400 Record entry Clear entry View general journal Journal entry worksheet 6 7 8 Record the accrued interest for the period 09/30/2021 - 12/31/2021. Note: Enter debits before credits General Journal Debit Credit Date 12/31/2021 Record entry Clear entry View general Journal Journal entry worksheet 5 7 8 Record to revalue the note payable at the spot rate, and record the foreign exchange gain/loss thereof. Note: Enter debits before credits. General Journal Debit Credit Date 12/31/2021 View general Journal nardantry Clear entry Journal entry worksheet 5 6 3 8 Record the second annual interest payment, record interest expense for the period 01/01/2022 - 09/30/2022, and record a foreign exchange gain or loss on the interest payable accrued at 12/31/2021. Note: Enter debits before credits General Journal Debit Credit Date 09/30/2022 View general journal Clear entry Record entry Journal entry worksheet 5 6 7 700 Record the payment of 1 million yuan note. Note: Enter debits before credits Date General Journal Debit Credit 09/30/2022 Record entry Clear entry View general Journal December 31, 2021 September 30, 2022 0.120 0.125 8.150 a. Prepare all journal entries related to this foreign currency borrowing b. Taking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in US dollars on the loan in each of the three years 2020 2021, and 2022 Complete this question by entering your answers in the tabs below. Required A Required B Taking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in US. dollars on the loan in each of the three years 2020, 2021, and 2022. (Do not round Intermediate calculations) Effective Cost of Barrowing 2020 2021 2022
