Exercise 2.3 RIGHTS ISSUE Laos Ltd had share capital of one million $1 shares fully paid. As it needed finance for certain construc tion projects the company's management decided to make a non-renounceable rights issue to existing shareholders of 200 000 new shares at an issue price of $5 per share. The rights issue was to be fully underwritten by Finance Brokers Ltd. The prospectus was issued on 15 February 2013 and applications closed on 15 March 2013. Costs associated with the rights issue and the eventual issue of the shares were $10.000 Elements (a) (b) If 80% of the rights were exercised by the due date, provide journal entries made by Laos Ltd in relation to the rights issue and the eventual share issue. If the rights issue was not underwritten and any unexercised rights lapsed, what would be the required journal entries