West Ltd needs to raise funds for mining projects in the Northern Territory. When it was first established it issued 2.0 million shares at \($1\) each. In the current year, the directors have decided to make a non-renounceable rights issue to existing shareholders of 200  000 new shares at an issue price of \($7.50\) per share.

Ed Dunder Ltd, a firm of finance brokers has agreed to fully underwrite the rights issue.

Oscar Ltd issued a prospectus on 1 April 2024 and applications closed on 3 May 2024.

Costs associated with the rights issue and the eventual issue of the shares were \($15\)  000.

Required 

1. Prepare the journal entries for the rights issue and the subsequent share issue made by West Ltd, assuming that 80% of the rights were exercised by the due date.

2. Prepare the journal entries assuming that the rights issue was not underwritten and that any unexercised rights lapsed.