15. please fill the empty spot from the account list. thanks On January 1, 2021, Novak Ltd. paid $316,289.83 for 12% bonds of Variation Ltd. with a maturity value of $294,000. The bondsprovide the bondholders with a 10% yield. They are dated January 1, 2021, mature on January 1, 2026, and pay interest eachDecember 31. Novak acquired the bond investment as part of its portfolio of trading securities and it accounts for the bonds at FV-NI,following IFRS. At December 31, 2021, Novak's year end, the bonds had a fair value of $314,300.00.During 2022, the economic outlook related to Variation's primary business took a major downturn, so that Variation's debt wasdowngraded. By the end of 2022, the bonds were priced at 85.5, and at December 31, 2023, they were selling in the market at 87.Conditions reversed in 2024 and the outlook for Variation significantly improved, leaving its bonds with a fair value of 99.5 atDecember 31, 2024.(b)Your answer is partially correct.Prepare the entries to record Novak's purchase of the bonds on January 1, 2021, the recognition of interest income and interestreceived on December 31, 2021, and the fair value adjustment required at December 31, 2021. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter o for the amounts. List all debit entries before credit entries. Round answers to 2 decimal places, e.g. 52.75.)DateJan. 1, 2021Dec. 31, 2021Account Titles and ExplanationFV-NI InvestmentsCashCash(To record collection of interest)Unrealized Gain or Loss - OCIFV-NI Investments(To record fair value adjustment)Debit316289.83352802289.93Credit31 Accumulated Other Comprehensive IncomeAllowance for Investment ImpairmentBond Investment at Amortized CostCashCommission ExpenseDividends ReceivableDividend RevenueFV-NI InvestmentsFV-OCI InvestmentsGain on Disposal of Investments - FV-NIGain on Disposal of Investments in AssociateGain on Disposal of Investments - Cost/Amortized CostGain on Disposal of Investments - FV-NIGain on Disposal of Investments - FV-OCIGain or Loss in Value of Investment PropertyGST ReceivableInterest ExpenseInterest IncomeInterest PayableInterest ReceivableInvestment in AssociateInvestment Income or LossLoss on Discontinued OperationsLoss on Disposal of Investments - Cost/Amortized CostLoss on Disposal of Investments - FV-NILoss on Disposal of Investments - FV-OCILoss on ImpairmentNo EntryNote Investment at Amortized CostOther InvestmentsRecovery of Loss from ImpairmentRetained EarningsUnrealized Gain or LossUnrealized Gain or Loss - OCI

Question

15. please fill the empty spot from the account list. thanks On January 1, 2021, Novak Ltd. paid $316,289.83 for 12% bonds of Variation Ltd. with a maturity value of $294,000. The bondsprovide the bondholders with a 10% yield. They are dated January 1, 2021, mature on January 1, 2026, and pay interest eachDecember 31. Novak acquired the bond investment as part of its portfolio of trading securities and it accounts for the bonds at FV-NI,following IFRS. At December 31, 2021, Novak's year end, the bonds had a fair value of $314,300.00.During 2022, the economic outlook related to Variation's primary business took a major downturn, so that Variation's debt wasdowngraded. By the end of 2022, the bonds were priced at 85.5, and at December 31, 2023, they were selling in the market at 87.Conditions reversed in 2024 and the outlook for Variation significantly improved, leaving its bonds with a fair value of 99.5 atDecember 31, 2024.(b)Your answer is partially correct.Prepare the entries to record Novak's purchase of the bonds on January 1, 2021, the recognition of interest income and interestreceived on December 31, 2021, and the fair value adjustment required at December 31, 2021. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select &#34;No Entry&#34; for the account titlesand enter o for the amounts. List all debit entries before credit entries. Round answers to 2 decimal places, e.g. 52.75.)DateJan. 1, 2021Dec. 31, 2021Account Titles and ExplanationFV-NI InvestmentsCashCash(To record collection of interest)Unrealized Gain or Loss - OCIFV-NI Investments(To record fair value adjustment)Debit316289.83352802289.93Credit31 Accumulated Other Comprehensive IncomeAllowance for Investment ImpairmentBond Investment at Amortized CostCashCommission ExpenseDividends ReceivableDividend RevenueFV-NI InvestmentsFV-OCI InvestmentsGain on Disposal of Investments - FV-NIGain on Disposal of Investments in AssociateGain on Disposal of Investments - Cost/Amortized CostGain on Disposal of Investments - FV-NIGain on Disposal of Investments - FV-OCIGain or Loss in Value of Investment PropertyGST ReceivableInterest ExpenseInterest IncomeInterest PayableInterest ReceivableInvestment in AssociateInvestment Income or LossLoss on Discontinued OperationsLoss on Disposal of Investments - Cost/Amortized CostLoss on Disposal of Investments - FV-NILoss on Disposal of Investments - FV-OCILoss on ImpairmentNo EntryNote Investment at Amortized CostOther InvestmentsRecovery of Loss from ImpairmentRetained EarningsUnrealized Gain or LossUnrealized Gain or Loss - OCI

Accepted Answer

Introduction:-
Preparation of the entries to record Novak's purchase of the bonds on January 1,…