Les Banhouse and Joan Skoye began a new business on February 14 when each of them invested $162,500 in the company. On December 20, it was decided that $62,400 of the cash of company would be distributed equally between the owners and given to the owners on December 23. On December 31, the company reported a $124,800 net income. Prepare two sets of journal entries to record the investments by the owners, the distribution of cash to the owners, the closing of the Income Summary account, and the withdrawals or dividends under these alternative assumptions:

a- The business is a partnership

b- The business is a corporation that issued 1,000 common shares.