Distinguish between a public share float and a debt issuance

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PRIVATE PLACEMENT Mining company Edgar Digging Ltd announced plans to raise $1150000 through a placement of 5111111 ordinary fully paid shares at $0.225 per share to institutional investors to fund new surveys and drilling campaigns for its copper project. Prior to this announcement the shares of Edgar Digging Ltd were trading at around $0.26.

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Question 1: Distinguish between a public share float and a debt issuance.

Question 2: Assuming that the placement above proceeded, what journal entries would be required to account for it?

Reference no: EM132565694

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