On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 1,500,000 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 U.S. Dollar per Chinese Yuan (CNY) September 30, 2020 $ 0.150 December 31, 2020 0.155 September 30, 2021 0.170 December 31, 2021 0.175 September 30, 2022 0.200 Prepare all journal entries related to this foreign currency borrowing. 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. On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 1,500,000 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 U.S. Dollar per Chinese Yuan (CNY) September 30, 2020 $ 0.150 December 31, 2020 0.155 September 30, 2021 0.170 December 31, 2021 0.175 September 30, 2022 0.200 Prepare all journal entries related to this foreign currency borrowing. 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.On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year, 1,500,000 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 U.S. Dollar per Chinese Yuan (CNY) September 30, 2020 $ 0.150 December 31, 2020 0.155 September 30, 2021 0.170 December 31, 2021 0.175 September 30, 2022 0.200 Prepare all journal entries related to this foreign currency borrowing. 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. 1.Record the receipt of 1,500,000 million yuan note. 2.Record the accrued interest for the period 09/30/2020 – 12/31/2020.2. 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. 9.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.