Question: You qualified for a student loan in the amount of $10,000. Once you graduate, you are required to repay this loan over 10 years at

You qualified for a student loan in the amount of $10,000. Once you graduate, you are required to repay this loan over 10 years at a rate of interest of 4 percent. The monthly interest and principal repayments are calculated like a mortgage. The following table illustrates the first four payments beginning November 1, 2014.

Using the information from the table, record the journal entry for the December 1, 2014, loan payment.

Student Loan Payments Reduction in Loan Period Loan Payment Interest Loan Balance Nov. 1, 2014 Dec. 1, 2014 Jan. 1, 2015 Feb. 1, 2015 Mar. 1, 2015 $101.25 101.25 101.25 101.25 $33.33 33.11 32.88 32.65 $67.92 68.14 68.37 68.60 $10,000.00 9,932.08 9,863.94 9,795.57 9,726.97

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