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.

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, 2020 Bank Balance, August 31. Add Deposits in transit.. $ 3,300 Balance, August 31. Add 400 Bank collections Books $2,820 800 Interest revenue. 10 Less Less Outstanding cheques. Adjusted bank balance (100) Service charge. (30) $ 2,600 Adjusted book balance. $3,500