Final answer:
Singleton Bank lends $9 million to Hank's Auto Supply and records it as an asset on its balance sheet.
Step-by-step explanation:
In this scenario, Singleton Bank lends $9 million to Hank's Auto Supply. The bank records this loan by making an entry on the balance sheet to indicate that it has made a loan. This loan is considered an asset, as it will generate interest income for the bank. However, the bank does not allow Hank to walk out with $9 million in cash. Instead, the bank issues Hank's Auto Supply a cashier's check for the $9 million. Hank then deposits the loan into his regular checking account with First National Bank.