9. Mae Jong Corp. issued 1,000 convertible bonds at the beginning of 2011. The bonds have a four-year term with a stated rate of interest of 6 percent, and are issued at par with a face value of 1,000 per bond (the total proceeds received from issuance of the bonds are 1,000,000). Interest is payable annually at December 31. Each bond is convertible into 250 ordinary shares with a par value of 1. The market rate of interest on similar non-convertible debt is 9 percent. On December 31, 2012, Mae Jong wishes to reduce its annual interest cost. The company agrees to pay the holder of its convertible bonds an additional 40,000 if they will convert. Assuming conversion occurs, Mae Jong's journal entry to record the conversion will include all of the following except a. Debit Bonds Payable 1,000,000 b. Debit Share Premium Ordinary 40,000 C. Credit Cash 40,000 d. Credit Share Capital-Ordinary 250,000