Mellon Bank is a large bank holding company. Selected accounts from the company’s 2008 annual report are as follows (in millions):

Cash and Due from Banks..............$4,881 

Loans to Customers.........................42,979 

Securities Available for Sale............32,064 

Deposits by Customers.................159,673 

1. Indicate whether each of the accounts just listed 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 this large company. 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.