On January 5, 1989, Bob Long, Kim Wong, and Phil Song started a business in which Bob Long invested \(\$ 15,000\), Kim Wong invested \(\$ 30,000\), and Phil Song invested \(\$ 45,000\). During 1989 , the business lost \(\$ 4,500\); and during 1990 , it earned \(\$ 27,000\). On January 5,1991 , the three business owners agreed to pay out to themselves \(\$ 18,000\) of the accumulated earnings of the business; and on January 10 , the \(\$ 18,000\) was paid out.

\section*{Required}

1. Assume that the business is a partnership and that the partners share net incomes and net losses in proportion to their investments. Give the entries to record the investments and to close the Income Summary account at the end of 1989 and again at the end of 1990 . Also assume that the partners paid out the accumulated earnings in proportion to their investments. Give the entry to record the withdrawals.

2. Assume that the business is organized as a corporation and that the owners invested in the corporation by buying its \(\$ 10\) par value common stock, with Bob Long buying 1,500 shares, Kim Wong buying 3,000 shares, and Phil Song buying 4,500 shares. Give the entry to record the investments. Also give the entries to close the Income Summary account at the end of 1989 and again at the end of 1990. Then give the entries to record the declaration and payment of the \(\$ 2\) per share dividend. (Ignore corporation income taxes and assume the investors are the corporation's board of directors.)