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.

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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