On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 1,200,000 Chinese 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 year-end. Relevant exchange rates are as follows: Date September 30, 2020. U.S. Dollar per Chinese Yuan (CNY) $0.120 December 31, 2020 0.125 September 30, 2021 0.140 December 31, 2021 0.145 September 30, 2022 0.170 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 U.S. dollars on the loan in each of the three years 2020, 2021, and 2022. Complete this question by Assessment Tool IFrames 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.)