Shaw company sells goods that cost $300,000 to ricard company for $410,000 on january 2, 2017. the sales price includes an installation fee, which has a standalone selling price of $40,000. the standalone selling price of the goods is $370,000. the installation is considered a separate performance obligation and is expected to take 6 months to complete.

a. (a) prepare the journal entry (if any) to record the sale on january 2, 2017. (credit account titles are automatically indented when amount is entered. do not indent manually. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)

b. shaw prepares an income statement for the first quarter of 2017, ending on march 31, 2017 (installation was completed on june 18, 2017). how much revenue should shaw recognize related to its sale to ricard?

On february 10, 2014, after issuance of its financial statements for 2013, higgins company entered into a financing agreement with cleveland bank, allowing higgins company to borrow up to $6,000,000 at any time through 2016. amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. higgins company presently has $2,250,000 of notes payable with star national bank maturing march 15, 2014. the company intends to borrow $3,750,000 under the agreement with cleveland and liquidate the notes payable to star national bank. the agreement with cleveland also requires higgins to maintain a working capital level of $9,000,000 and prohibits the payment of dividends on common stock without prior approval by cleveland bank. from the above information only, the total short-term debt of higgins company as of the december 31, 2013 balance sheet date is