Mining company Rock Solid Metals Ltd announced plans to raise \($1\)  000  000 through a placement of 5  000  000 ordinary fully paid shares at \($0.20\) per share to institutional investors to fund new surveys and drilling campaigns for its copper project. Prior to this announcement the shares of Aeon Metals Ltd were trading at around $0.26.

Required

1. Distinguish between a public share float and a private placement.

2. Assuming that the placement above proceeded, what journal entries would be required?