a. A finance lease. this as: b. A sales type lease without selling profit. c. A sales type lease with selling profit. d. An operating lease. 17) Metro Inc. issued $200,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on October 31 and April 30. Metro's fiscal year is the calendar year. Metro uses the effective interest method of amortization. Required: 1. Prepare the journal entry to record the bond issuance on May 1, 2021. I 2. Prepare the necessary journal entry on October 31, 2021 (1st payment). 3. Prepare the adjusting entry for the accrued interest (for 2 months) on December 31, 2021 18) The Metro Company (lessee) leased equipment from Denver Industries on January 1, 2021. Denver (lessor) manufactured the equipment at a cost of $270,000.