The following is an actual case:

Fortescue raises $504m

Iron ore hopeful Fortescue Metals Group has raised $504 million to fund expansions to its emerging project in the Pilbara region of Western Australia. Fortescue said it had set a minimum raising target of US$300 million (A$344 million) for the much-anticipated capital raising, but decided to increase the target amount after strong demand. The company issued 14 million shares at $36 each to raise $504 million.

The project was initially slated to produce 45million tonnes of iron ore on an annual basis.

Required

A. As the above share issue was a private placement with several well-known investors, prepare the journal entry, in general journal form, made by the company to record the share issue.

B. How would your answer to A. differ if the share issue had been a public share float?