Reference no: EM132842485

Question - The Board of Directors of the Mining company Pine Metals Ltd (PML) wants to either or issue a prospectus inviting applications from the general public for 600 000 ordinary shares, at an issue price of $7, payable $2.50 on application, $1.50 on allotment, and $3 on future call announce plans to raise $4 200 000 through a placement of 600 000 ordinary fully paid shares at $7 per share to institutional investors to fund new surveys and drilling campaigns for its copper project. PML expects to issue a prospectus inviting applications for 600 000 ordinary shares to the public, payable as follows:

$2.50 on application (due by closing date of 31 January)

$1.50 on allotment (due 28 February)

$3.00 on future call/calls (due 30 June)

The Chief Executive Officer (CEO) of PML has instructed you, as the Chief Accountant, to submit a report to the board providing advice on the following:

Assuming that the public share float above proceeded, what journal entries would be required to account for it?

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