So far we've accounted for $261 + $26

= $287 worth of changes in the pension liability,

that's $35 too much.

It only changed by $252.

What's the missing entry?

Well, the missing entry is the contribution

from the employer,

which reduces the liability.

It's the liability of the employer to the plan.

So now we've accounted for the entire change,

in the liability during the period.

So what do we have?

The statement of financial

position at the end of the period,

we're going to have the following amounts.

We'll have that pension liability of $352,

we'll have and accumulated other comprehensive income,

the prior service cost when we close

the other comprehensive income into AOCI.

That will be net $230 because we've already

reclassified or recycled 10 of it into income.

We also have a net amount in AOCI of gains and losses.

This is assuming that we had

a zero balance to begin with of course,

of $21 and that will be net of

$43 amount that was a debit and

a $22 amount that was a credit.

We end up with a debit of $21.

See if you can derive that amount

for the gains and losses.

So let's look at what we have now.

Let's look first at the statement

of comprehensive income.

So here in the following amounts,

we're going to recognize in comprehensive income.

Remember comprehensive income is

both net income and other comprehensive income.

So in that periodic benefit cost,

we'll have a total of $36.

That was $100 of service cost,

$94 of interest cost,

$10 of amortization or prior service cost,

and then you back out and net it against

the expected return on plan assets of $168, total of $36.

Another comprehensive income, we

have that prior service cost,

which is, net it to $230.

Remember, the initial entry was

$240, the initiating entry,

and then we reclassified $10 of that

as we amortized the prior service of cost into income,

so the net amount of other comprehensive income,

this period from prior service cost is $230,

the net amount of other comprehensive income

from gains and losses is $21.

That again is the net of

the actuarial gains and losses on the obligation and

the actuarial gains and losses on the assets which

is the difference between actual and

expected return on plan assets,

and the total in OCI is $251.

It's a little complicated,

if you do understand it and take it step by step,

and start out with the amounts to

go into other comprehensive income,

proceed into that periodic benefit costs,

don't forget to pick up

any contributions for the importer.

You should be able to reconcile the change

and the net benefit obligation for the year.

That's a good auditing tool

to make sure you've got it correct,

but it's also a nice exercise to show that

you actually understand what's happened,

and that everything has been correctly entered

into the books of account. Thank you.