Cash Receipts
We started with our opening balance in our cash account from the previous set of statements. A month has gone by so now we have to make adjustments related to the month's activities to that opening balance that we know about. We definitely know the cash we collected during the period. MMM has a cash receipts/bank deposits list for us to use (Exhibit 3). We need to record the effect of these receipts on our opening cash balance in our records; therefore, we must add these receipts to our cash balance. MMM collected $4,136.18, and made the deposits to the bank. You would record this on the bank reconciliation as follows:
