Jordan Quinn manages the local homeless shelter. He fears that a trusted employee has been stealing from the shelter. This employee receives cash from supporters and also prepares the monthly bank reconciliation. To check on the employee, Quinn prepares his own bank reconciliation as in Exhibit 4-4 on page 183.

Does it appear that the employee stole from the shelter? If so, how much? Explain your answer. Which side of the bank reconciliation shows the shelter's true cash balance?

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Homeless Shelter Bank Reconciliation August 31, 2017 Bank Books Balance, August 31 Add Balance, August 31 Add 3,300 . $2,820 Deposits in transit 400 Bank collections 800 Interest revenue 10 Less Less Outstanding cheques Adjusted bank balance (1,100) S 2,600 Service charge Adjusted book balance (30) $3,600