Final answer:
The question pertains to classifying accounts into assets, liabilities, or stockholders' equity on a T-account and identifying their normal balances. Assets typically have a debit balance, while liabilities and stockholders' equity have a credit balance. This ensures that Assets = Liabilities + Stockholder's Equity on a bank's balance sheet.
Step-by-step explanation:
The student's question asks how to categorize selected accounts into assets, liabilities, or stockholder's equity, and to identify their normal balances. In accounting, the T-account is a fundamental concept that represents a ledger account and is used to depict the dual effect on the balance sheet. For a bank, assets might include reserves, loans made, and securities like U.S. Treasury bonds. Liabilities are what the bank owes to others, including customer deposits. The difference between total assets and total liabilities is the net worth, also known as stockholder's equity, which reflects the financial health of the institution.
Assets typically have a debit normal balance, meaning an increase is represented on the left side of the T-account. Liabilities and stockholder's equity normally have a credit balance, with increases shown on the right side. This structure ensures that the accounting equation, Assets = Liabilities + Stockholder's Equity, balances out. For a bank, deposits are a liability, and the cash available or loans made are considered assets.