Fred Jones started a consulting business on 1 March 2016. During the period up to 30 June 2016, the following transactions occurred:
1. Fred put $10 000 of his own money into the business.
2. He borrowed $30 000 from the bank at 10 per cent per annum for one year with interest to be repaid at the end of the loan.
3. He sent bills for $35 000 to customers for work performed. By 30 June he had received $30 000 and expected the other $5000 in July.
4. He bought a computer for $8100 that has an expected useful life of three years.
5. He paid $12 000 in wages.
6. He paid other expenses of $20 000.
7. He received a $500 bill for advertising (appeared in newspapers in May; will be paid in July).
Using the concepts of accrual accounting, calculate Fred's profit for the four months ending 30 June 2016.