E6-40. Analyzing Unearned Revenue Liabilitie-s 4 and is widely regarded as one /Th e Lyric opera of Chicago was founded in 195 n eight-opera season that exten greatest opera companies. Each year. The Lyric has a September to seats s f March, and its loyal subscribers (numbering more than 30,000) eag for the upcoming ases. The Lyric recognizes "Defered tic for coming performances. In fact, many subscribers purchase their tickets year before the close of The Lyric's fiscal year. For these ticket purch liability entitled Deferred Ticket and Other Revenue and defined in its footnotes as revenue relates to ticket sales for the following opera season. Information about The Lyric Opera's ticket revenue and deferred ticket revenue liabili given below (S thousands). Assume that the "Other" portion of deferred revenue is negligible. Deferred Ticket and Other Revenue (Year-end Liability) Fiscal year ended Ticket Sales (Revenue) $28,878 26,671 25,030 23,775 $13,750 14,525 12,638 12,711 What revenue recognition principle(s) drive The Lyric's deferral of advance ticket purchases? Recreate the summary journal entries to recognize ticket sales revenue for The Lyric's fiscal year 2014 and advance sales for the fiscal year 2015 season The Lyric Opera's season changes every year, with a mixture of classical and contemporary operas. At the end of each fiscal year, management of The Lyric can observe the revenue generated by the season just concluded and also its subscribers' enthusiasm for the upcoming season. How might that information be used in managing the organization? a. b. c