On 13 March 2013, Mining company Aeon Metals Ltd announced plans to raise $1 150 000 through a placement of 5 227 273 ordinary fully paid shares at $0.22 per share to institutional investors to fund new surveys and drilling campaigns for its copper project. Prior to this announcement the shares of Aeon Metals Ltd were trading at around $0.26.

(Based on information from Aeon Metals, www.aeonmetals.com.au.)

Required

A. Distinguish between a public share float and a private placement.

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