Brent Secrest manages Englander Advertising. Secrest 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, Secrest prepares his 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 cash balance?

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Englander Advertising Bank Reconciliation August 31,20X7 Bank Books 3,300 Balance, August 3 1... $2,820 Add: Add: 400 Bank collections Interest revenue 800 10 Deposits in transit Less: Less: Outstanding checks Adjusted bank balane (1,100) Service charge30) 2,600 Adjusted book balance