On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 3,500,000 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) $ 0.248 0.245 0.260 0.265 0.29e 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. Prepare all journal entries related to this foreign currency borrowing. (Do not round intermediate calculations. If no er required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Credit Debit 840,000 1 09/30/2020 Cash Note payable (CNY) 840,000 2 12/31/2020 8,575 Interest expense Interest payable (CNY) 8,575 3 12/31/2020 17,500 Foreign exchange loss Note payable (CNY) 17,500 4 09/30/2021 27,825 x Interest expense Interest payable (CNY) 8,575 36,400 5 12/31/2021 9,275 Interest expense Interest payable (CNY) 9,275 6 12/31/2021 70,000 Foreign exchange loss Note payable (CNY) 70,000 7 09/30/2022 40,600 X Foreign exchange loss Interest payable (CNY) 40,600 8 09/30/2022 Foreign exchange loss Note payable (CNY) Cash 87,500 927,500 1,015,000