For Journal entries:

1) Record the receipt of 3,100,000 million yuan note.

2) Record the accrued interest for the period 09/30/2020 12/31/2020.

3) Record to revalue the note payable at the spot rate, and record the foreign exchange gain/loss thereof.

4) 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.

5) Record the accrued interest for the period 09/30/2021 12/31/2021.

6) Record to revalue the note payable at the spot rate, and record the foreign exchange gain/loss thereof.

7) 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.

8) Record the payment of 1 million yuan note.

On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotlated a two-year, 3,100,000 ChInese yuan loan from a Chinese bank at an Interest rate of 4 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 financlal statements and has a December 31 year-end. Relevant exchange rates are as follows: a. Prepare all Journal entrles related to this forelgn currency borrowing. b. Taking the exchange rate effect on the cost of borrowing Into consideration, determine the effective Interest rate in U.S. 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. Taking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in U.S. dollars on the loan in each of the three years 2020, 2021, and 2022. (Do not round intermediate calculations.)