On January 1, 2018, three friends formed a business which they named as "The Three Friends". Between them they contributed $ 2,000,000 (Capital stock) to form the company. On December 31, 2019 they drew up a list of the assets that they had to date and that were owned by the business and a list of all their debts, since they are applying for a bank loan and the bank asks for their balance sheet. None of them have studied accounting so they come to you so that you help them to realize that financial state. Something they do not know is their earnings to date, so they also ask for your help to tell them which ones have been to date.

Cash	$120,000
Inventories	70,000
Transportation equipment	680,000
Building	1,900,000
Office equipment	300,000
Customers	150,000
Wages payable	190,000
Taxes payable	80,000
Suppliers	100,000
Long-term notes payable	500,000

- You have to work out the balance sheet by appropriately identifying the assets, liabilities and capital

- Calculate the amount of your retained earnings as of December 31, 2019

With the above information, proceed to answer the following questions:

(a) What is the amount of retained earnings?

(b) What is the amount of your total liability and equity?