Claire Hunter manages Sunshine Manufacturing. Hunter 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, Hunter 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 cash balance?

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A1 A. Sunshine Manufacturing Bank Reconciliation May 31, 2016 Bank Books $ 3,780 $ 4,400 Balance, May 31 Add: 3 Balance, May 31 4 Add 5 Deposits in transit 950 50 50 Bank collections Interest revenue Less 7Less 8 Outstanding checks (760Service charge 9 Adjusted bank balance S 3,990 Adjusted book balance 10 25