On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 1,300,000 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 financial statements and has a December 31 year-end. Relevant exchange rates are as follows: Date September 30, 2020 December 31, 2020 September 30, 2021 December 31, 2021 September 30, 2022 U.S. Dollar per Chinese Yuan (CNY) $ 0.130 0.135 0.150 0.155 0.180 . 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 4 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.) No 1 Date 09/30/2020 Cash Note payable (CNY) 2 12/31/2020 Interest expense 3 12/31/2020 4 09/30/2021 Interest payable (CNY) Foreign exchange loss Note payable (CNY) Interest expense Interest payable (CNY) Foreign exchange loss Cash 5 12/31/2021 Interest expense 12/31/2021 7 09/30/2022 8 09/30/2022 General Journal Interest payable (CNY) Foreign exchange loss Note payable (CNY) Interest expense Interest payable (CNY) Foreign exchange loss Cash Note payable (CNY) Foreign exchange loss Cash < Required A 0000 0000 00 00 0000 000 Required B > Debit 169,000 Credit 169,000 1,755 1,755 6,500 6,500 6.045x 1,755 * 1 * 6.045x 7,800 2,015 2,015 26,000 26,000 7,345 x 2,015 9,360 9,360 234,000 x 32,500 234,000