Navarro's Kitchen's restaurant closes its accounts on December 31 each year, using the Retained Earnings account. On December 31, 2019, Navarro's Kitchen's accrued interest income total $1,880 that was earned on a $80,000 investment but not yet received or recorded. Prepare journal entries to:
a. Accrue the interest earned on December 31, 2019.
b. Close the Interest Income account on December 31, 2019. (The Interest Income account has a year-end balance of $5,800 after adjustments).

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The Answer of Navarro's Kitchen's restaurant closes its accounts on December 31 each year, using the Retained Earnings account. On December 31, 2019, Navarro's Kitchen's accrued interest income total $1,880 that was earned on a $80,000 investment but not yet received or recorded. Prepare journal entries to:
a. Accrue the interest earned on December 31, 2019.
b. Close the Interest Income account on December 31, 2019. (The Interest Income account has a year-end balance of $5,800 after adjustments).

Navarro's Kitchen's Restaurant Closes Its Accounts on December 31 Each