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.