Barbara Smith manages Jones Advertising. Smith fears that a trusted employee has been stealing from the company. This employee receives cash from clients and also prepares the monthly bank reconciliation. To check up on the employee, Smith prepares her own bank reconciliation, as follows:

Does it appear that the employee has stolen from the company? If so, how much? Explain your answer.
Which side of the bank reconciliation shows the company€™s true cashbalance?

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Jones Advertising Bank Reconciliation October 31, 2010 Bank Books Balance, October 31$4,400 Balance, October 31$3,920 Add: Add: Deposits in transit500 Bank collections..900 20 Less: Less: Outstanding checks..(900 Adjusted bank balance. $4,000 Service charge … (40) Adjusted book balance..$4800