master.xml

<data>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
  <entry>Text</entry>
</data>

master.xsl

<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform" version="1.0">

  <xsl:output method="xml" indent="yes" />

  <xsl:template match="/">
    
    
    <xsl:for-each select="data/entry">
      <div>
        <xsl:if test="position() mod 4 = 0">
          <ul>
          <xsl:attribute name="class">last</xsl:attribute>
            <xsl:call-template name="content"/>
          </ul>
        </xsl:if>
        
      </div>
    </xsl:for-each>
    
          
  </xsl:template>
  
  <xsl:template name="content">
    <li><xsl:value-of select="." /></li>
  </xsl:template>

</xsl:stylesheet>