1.Board of directors of furniture company Wilson ltd wants to either issue a prospectus inviting applications from general public for 700000 ordinary shares at on issue price of $8 payable $3.50 on application $ 1.50 on allotment and $3 on furniture call or announce plans to raise $5600000 through a placement of 700000 ordinary fully paid shares at $8 per share to institutional investors to fund new business Wilson expects to issue a prospects inviting applications for 700000 ordinary shares to the public payable as follow:

$3.50 on applications (Due by closing date of 31 January)

$1.50 on allotment (due 28 February)

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

Chief Executive office of WL instructed chief accounted to submit report to the board providing advice on the followings.

Required.

1. Distinguish between a public placement
2. Assuming that the public share float above proceeded what journal entries would be required.