a Travel Goods Pty Ltd was formed on 1 July 2014. On 30 June 2015, Mark Austin, the managing director and major shareholder, decided to prepare a statement of financial position, which appears as follows:

Smart Travel Goods Pty Ltd

Statement of financial position

As at 30 June 2015AssetsLiabilities and EquityCash

$30,000

Accounts payable

$30,000

Accounts receivable

23,000

Notes payable

12,000

Inventory

40,000

Bank loan

350,000

Villa

450,000

Equity

151,000

Mark is concerned that his statement of financial position might not be correct. He has provided you with the following additional information:

• The villa is on the Sunshine Coast and actually belongs to Mark, not to Smart Travel Goods Pty Ltd. However, because he thinks he might allow executives to use it sometimes, he decided to list it as an asset of the company. To be consistent he also listed as a liability of the company his personal loan that he took out at the bank to buy the villa (i.e., Bank loan: $350,000).
• The inventory was originally purchased for $15,000, but due to a surge in demand, Mark now thinks he could sell it for $40,000. He thought it would be best to record it at $40,000.
• Included in the accounts payable balance is $6,000 that mark owes for his personal telephone account. Mark included this in the accounts payable of Smart Travel Goods Pty Ltd because he will probably use a company cheque to pay for it.