Question

Mellon Bank is a large bank holding company. Selected accounts from the company’s 2009 annual report are as follows (in millions):
Cash and Due from Banks ........ $ 3,732
Loans to Customers ......... 36,186
Securities Available for Sale ...... 51,632
Deposits by Customers ........ 135,050
1. Indicate whether each of these accounts is an asset, a liability, or a component of stockholders’ equity on Mellon Bank’s balance sheet.
2. Assume that you are in a position to do business with Mellon. Show how Mellon Bank’s accountants would prepare the entry in T account form to record each of the following transactions:
a. You sell securities in the amount of $2,000 to the bank.
b. You deposit in the bank the $2,000 received from selling the securities.
c. You borrow $5,000 from the bank.



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  • CreatedSeptember 10, 2014
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