After meeting with Software Solutions, Emily was able to negotiate a continuation of existing credit terms of $30$ days. She

decided to take on the additional work offered by Software Solutions. In order to better handle this work, ABC decided to

upgrade its computer equipment and hire two additional employees. After some research and much discussion, the

computer upgrades and costs were determined to be as follows:

$1.$ Old server will be retired and donated to the community centre. It was originally purchased for $$14,040$ on

January $3,2020.$ It is being depreciated on a straight$-$line basis over a five$-$year useful life with no residual

value.

$2.$ Purchase of a new server, including installation, $$22,000.$

$3.$ Purchase of computing equipment for the new employees at a cost of $$3,100.$

$4.$ Purchase of additional yearly software usage licences for the two new employees at a cost of $$1,000$ each.

$5.$ Purchase of additional office furniture at a cost of $$2,400,$ plus delivery and shipping costs of $$500.$

$6.$ Additional insurance is required at a cost of $$1,000$ per year.

$7.$ Rearranging the office space and repainting the office to $$freshen things up$$ at a cost of $$2,850.$

Doug, Bev, and Emily anticipate that the cost of the upgrade can be financed by an operating line of credit with the bank if

additional cash is needed. The upgrades will take place between Christmas and New Year$$s when sales are a little slower.

If all goes smoothly, the new equipment will be installed and ready for use by January $2,2024.$

Emily is concerned about how to record these transactions in the accountin g records. She is not certain which costs

should be capitalized and which should be expensed. Record the journal entry $2$ through $7$ above. Assume all transactions are cash and occurred on january $22024.$