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Item 6 1 4 . 2 8 points Item 6 Following is a bank reconciliation for Zocar Enterprises for June 3 0 , Year 1

Item6
14.28
points
Item 6
Following is a bank reconciliation for Zocar Enterprises for June 30, Year 1:
Cash Account Bank Statement
Balance as of 6/30/Year 1 $ 1,918 $ 3,000
Deposit in transit 600
Outstanding checks (1,507)
Note collected by bank 2,000
Bank service charge (25)
NSF check (1,800)
Adjusted cash balance as of 6/30/Year 1 $ 2,093 $ 2,093
When reviewing the bank reconciliation, Zocars auditor was unable to locate any reference to the NSF check on the bank statement. Furthermore, the clerk who reconciles the bank account and records the adjusting entries could not find the actual NSF check that should have been included in the bank statement. Finally, there was no specific reference in the accounts receivable supporting records identifying a party who had written a bad check.
Required:
a. Prepare the adjustment that the clerk would have made to record the NSF check.
c. Assume the clerk had stolen $1,800 cash, and recorded an entry for a nonexistent NSF check to reduce the cash balance so that it would match the bank balance. Select the internal control practice that would have most likely prevented this fraud.
multiple choice
Separation of duties.
Maintaining a bank signature card.
Hiring competent employees.
Performance evaluations.
Required vacation.

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