The Lyric opera of Chicago is one of the largest and best-managed opera companies in the United

Question:

The Lyric opera of Chicago is one of the largest and best-managed opera companies in the United States. Managing opera productions requires advance planning, including the development of scenery, costumes, and stage properties and the sale of tickets. To measure how well the company is operating in any given year, management must apply accrual accounting to these and other transactions. At year-end, April 30, 2011, Lyric Opera’s showed deferred production costs and other assets of $1,978,322 and deferred ticket and other revenue of $12,710,639.? What accounting policies and adjusting entries are applicable to these accounts?
Why are they important to Lyric Opera’s management?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...