On January 1, 2021, Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $225,000. On that date, Burkss balance sheet disclosed net assets with both a fair and book value of $373,000. During 2021, Burks reported net income of $77,000 and declared and paid cash dividends of $23,000. Alamar sold inventory costing $21,000 to Burks during 2021 for $45,000. Burks used all of this merchandise in its operations during 2021.

Prepare all of Alamars 2021 journal entries to apply the equity method to this investment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

journal entry option list:

No journal entry required Cash Dividend income Dividend receivable Dividends payable Equity in investee income Goodwill Inventory Investment in Burks, Inc. Retained earnings Sales

On January 1, 2021, Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $225,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $373,000. During 2021, Burks reported net Income of $77,000 and declared and paid cash dividends of $23,000. Alamar sold Inventory costing $21,000 to Burks during 2021 for $45,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar's 2021 Journal entries to apply the equity method to this investment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the acquisition of a 39 percent interest in Burks. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal X 1 Record the acquisition of a 39 percent interest in Burks. 2 Record the 39 percent income earned by Alamar from this investment. 3 Record the investee dividend declaration. 4 Record the collection of dividend from investee. Credit