James Smith started a consulting business on 1 January 2019. During the period up to 30 June 2019, the following transactions occurred:

1. James put $40 000 of his own money into the business. 

2. He borrowed $40 000 from the bank at 10 percent per annum for one year with interest to be repaid at the end of the loan.

3. He sent bills for $37 000 to customers for work performed. By 30 June he had received $30 000 and expected the other $7000 in July.

4. He bought equipment for $8000 that has an expected useful life of four years.

5. He paid $14 000 in wages.

6. He paid other expenses of $15 000.

7. He received a $3000 bill for advertising (appeared in newspapers in May; will be paid in July). Using the concepts of accrual accounting, calculate James’ profit for the four months ending 30 June 2019.