Paul Jones set up his own catering business on 1 July 2021. During the 12 months up to 30 June 2022 the following transactions occurred:

1 Paul put $30 000 of his own money into the business.

2 He borrowed $40 000 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 $12 000 in wages and owed $2400 in wages for work done.

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

5 He paid other expenses of $10 000.

6 Paul sent bills for $60 000 to customers for work performed between 1 July 2021 and 30 June 2022. By 30 June he had received $55 000 and expected the other $5000 by August.

Using the concepts of accrual accounting, calculate Paul’s profit for the year ended 30 June 2022.