A bondholder decides to convert 40, $1,000 convertible bonds with a carrying value of $40,000, into2,000 shares of $5par value common stock. What is the correct credit portion of the journal entry for this conversion?

a.Credit: bonds payable 10,000

b.Credit: bond payable 40,000

c.Credit: common stock 10,000, additional paid-in capital 30,000

d.Credit: common stock 20,000; additional paid-in capital 20,000