E11.9 (LO 2,3) The following information was extracted from the financial records of Leong Cosmetics: 2022 2021 Balance Sheet Notes payable $200,000 $200,000 Less: Discount on notes payable. 12,000 14,400 Income Statement Interest expense $ 16,400 $ 16,200 Inferring an effective interest rate from the financial statements a. What is the effective interest rate on the notes payable? b. Prepare the journal entry to record interest expense during 2022.