(1). On March 1, 2010, Metro Electric Enterprises established an imprest petty cash fund for $200. An audit of the fund conducted on March 31, 2010, revealed the $30 cash on hand and the following receipts for petty cash disbursements:Office supplies $135Refreshments for meeting 20Postage on packages mailed 15Prepare the entry on March 1, 2010, to establish the petty cash fund, and the entry on March 31, 2010, to replenish the petty cash fund.
(2). In each of the following situations, identify the internal control weakness as well as the business's potential problem, and suggest a solution.a. Sandy Bingham purchases supplies for Joe Mack Music Company and stores them in a locked room for which she has the key. She is also responsible for distributing these supplies to employees upon request. At the end of each month, Sandy takes an inventory of the supplies on hand and notifies the accounting department of the amount for the adjusting entry for supplies used.b. The law firm of Wheeler, Dealer, and Brandt has been extremely busy in recent months. They need another lawyer, but the company has not had the chance to hire one. In the meantime, one of the secretaries has been preparing briefs, writing up wills, and preparing the closing papers for various real estate deals.