Question: 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

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?

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