Suppose that Wells Fargo lends

$287,000

to Jamal's Jerseys. Using T-accounts, show how this transaction is recorded on the bank's balance sheet.

(Enter

your responses as an integer. Include a minus sign to indicate a negative change, but do not include a plus sign for a positive

change.)

Wells Fargo

Assets		Liabilities
Loans	$287,000287,000	Checkable deposits	$287,000287,000

Part 2

If Jamal's spends the money to buy materials from Zach's Zippers, which has its checking account at PNC Bank, show the effect on Wells Fargo's balance sheet.

(Enter

your responses as an integer. Include a minus sign to indicate a negative change, but do not include a plus sign for a positive

change.)

Wells Fargo

Assets		Liabilities
Reserves	$negative 287,000287,000	Checkable deposits	$negative 287,000287,000

Part 3

What is the total change in Wells Fargo's assets and liabilities?

A.The total change in assets is zero, with an additional

$287,000

in loans and a loss of

$287,000

of reserves. The total change in liabilities is

$287,000.

B.The total change in assets is zero, with a loss of

$287,000

in loans and an additional

$287,000

of reserves. The total change in liabilities is zero, with the

$287,000

checking account being spent.

C.The total change in assets is zero, with a loss of

$287,000

in loans and an additional

$287,000

of reserves. The total change in liabilities is

$287,000.

D.The total change in assets is zero, with an additional

$287,000

in loans and a loss of

$287,000

of reserves. The total change in liabilities is zero, with the

$287,000

checking account being spent