Surj Uppal and Parvinder Atwal began a new business on February $14,$ when each invested $$157,500$ in the company. On December $20,$ it was decided that $$61,400$ of the company$$s cash would be distributed equally between the owners. Two cheques for $$30,700$ were prepared and given to the owners on December $23.$ On December $31,$ the company reported a $$122,800$ profit.

Required:

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. Cash dividend account is used for declaring dividends.