Answer and Explanation:
The journal entries are shown below:
1. Investment in Burks inc $199,000
To Cash $199,000
(being the investment purchased for cash is recorded)
2. Investment in Burks inc ($75,000 × 38%) $28,500
To equity in investment income $28,500
(Being the investment income is recorded)
3. Dividend receivable Dr ($22,000 × 38%) $8,360
To Investment in Burks inc $8,360
(Being the dividend receivable is recorded)
4. Cash Dr $8,360
To Dividend receivable $8,360
(Being the collection of cash is recorded)
Only these four entries are passed