James Smith started a consulting business on 1 January 2022. During the period up to 30 June 2022, the following transactions occurred:

1 James put $100 000 of his own money into the business.

2 He borrowed $40 000 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 $37 000 to customers for work performed. By 30 June he had received $29 000 and expected the other $8000 in July.

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

5 He paid $17 000 in wages.

6 He paid other expenses of $12 000.

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 six months ending 30 June 2022.