On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 2,000,000 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 Required A Required B (CNY) $0.200 0.205 0.220 0.225 0.250 a. Prepare all journal entries related to this foreign currency borrowing. b. Taking the exchange rate effect on the post 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. Prepare all journal entries related to this foreign currency horrowin

September 30, 2020, Peace Frog International (PFi) (a U.S-based company) negotiated a two-year, 2,000,000 Chinese yuan loan rom a Chinese bank at an interest rate of 4 percent per yeac. 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: a. Prepare all journal entries related to this foreign currency borrowing. b. Taking the exchange rate effect on the post 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. Journal entry worksheet 56 Record the receipt of 2,000,000 million yuan note. Note: Enter debits before credits. Journal entry worksheet Record the accrued interest for the period 09/30/2020 - 12/31/2020. Note: Enter debits before credits. Journal entry worksheet Record to revalue the note payable at the spot rate, and record the foreign exchange gain/loss thereof. Note: Enter debits before credits. Journal entry worksheet 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. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record to revalue the note payable at the spot rate, and record the foreign exchange gain/loss thereof. Note: Enter debits before credits. Journal entry worksheet 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. Journal entry worksheet 12345 Record the payment of 1 million yuan note. Note: Enter debits before credits. 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 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.)