John Smith set up his own catering business on 1 July 2015. During the 12 months up to 30 June 2016 the following transactions occurred:
1. John put $10000 of his own money into the business.
2. He borrowed $20 000 from the bank for one year at 5 per cent per annum, with interest to be paid at the end of the loan.
3. He paid $ 10 400 in wages and owed $3000 in wages for work done.
4. He bought catering equipment for $6000, which has an expected useful life of three years.
5. He paid other expenses of $12 300.
6. John sent bills for $60000 to customers for work performed between 1 July 2015 and 30 June 2016. By 30 June he had received $45 000 and expected the other $ 15 000 by August.
Using the concepts of accrual accounting, calculate John's profit for the year ended 30 June 2016.