Consider the sample sentence below from a novel.
As he stared at it, Emma announced “Its blackberry cake! It’s the best cake you’ll ever taste. Honest!” And with that, she stuffed in another big mouthful as she giggled happily.
I am unsure if this formatting is proper, or if I should have commas before and after the quotation, and a lowercase or uppercase A in and
.
The alternative would be like the following:
As he stared at it, Emma announced, “Its blackberry cake! It’s the best cake you’ll ever taste. Honest!”, and with that, she stuffed in another big mouthful as she giggled happily.
Which formatting is proper for a novel, with bookending quotations in commas or without, or am I totally off and some third option is correct?