Final answer:
Different sections of a balance sheet will include balances that are unadjusted, adjusted, or post-closing based on the nature of the account. Accounts Receivable and Accumulated Depreciation are presented with adjusted balances while Common Stock and Retained Earnings show post-closing balances.
Step-by-step explanation:
On a balance sheet, which is based on the fundamental accounting equation Assets = Liabilities + Equity, different types of balances will appear in their designated sections depending on whether they are unadjusted, adjusted, or post-closing balances:
- Accounts Receivable: This will usually appear on the balance sheet with an adjusted balance, reflecting all updates after adjustments for things like bad debt expense or uncollectible accounts.
- Accumulated Depreciation: This also appears as an adjusted balance on the balance sheet as it is updated for the depreciation expense recorded during the period.
- Common Stock: Common stock will show the post-closing balance since it's not subject to adjustment during the accounting period unless new stock is issued or bought back.
- Prepaid Expenses: This asset account will be shown with an adjusted balance as it decreases over time with the expense recognition.
- Retained Earnings: This equity account will be presented with a post-closing balance after all income and expenses have been accounted for and dividends have been distributed.
In summary, assets and liabilities like accounts receivable and accumulated depreciation, which can be subject to adjustments throughout the reporting period due to recognition of income or expenses, will be presented with adjusted balances. Equity accounts like common stock and retained earnings typically show post-closing balances on a balance sheet.