Caroline Haines manages May Advertising. Haines 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, Haines prepares her own bank reconciliation, as follows:

May Advertising
Bank Reconciliation
May 31, 2016
Bank		Books
Balance, May 31	$4,050	Balance, May 31	$4,120
Add:		Add:
Deposits in transit	800	Bank collections	800
		Interest revenue	60
Less:		Less:
Outstanding checks	(900)	Service charge	(65)
Adjusted bank balance	$3,950	Adjusted book balance	$4,915

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?

It appears the employee has _____ The adjusted _____ balance is the company's true cash balance, and the _____ more cash on hand. Therefore, the books must be _____