(Learning Objective 3: Using a bank reconciliation as a control device) 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:

■ writing assignment 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?