Answer:
The party was almost ruined by the rain last Saturday. When the rain approached, we all grabbed what we could.
"We better hurry," Mandy said, "or we'll get soaked."
Joe picked up the cake and said, "I've got the cake."
"You should get the sandwiches," yelled Theodore as he picked up the potato salad. We all made it under the gazebo as the first rain drops fell.
Step-by-step explanation:
Any dialogue spoken by a person should be put in quotation marks.
When a quote is interrupted in the middle of a sentence, as is the first quote, the dialogue should be separated with commas. The first comma stays with the first part of the quote. After the interruption comes another comma, and then the quote continues.
If a quote is incorporated into a sentence, like the second one, you end the narration with a comma and then start the quote. It works the other way around, too, like the third one; the quote starts the sentence, and it stops with a comma before the narration picks up where the quote left off.