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, 2017:

Using the information from the table, record the journal entry for the January 1, 2018, loan payment.

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Student Loan Payments Reduction in Loan Period Nov. 1, 2017 Dec. 1, 2017 Jan. 1, 2018 Feb. 1, 2018 Mar. 1, 2018 Loan Payment Interest Loan Balance $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