Certossi Service Ltd. uses straight-line depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during their first three years of operations: 2014 Jul 1 Purchased equipment for $32,000 cash, with shipping costs of $2,000. Nov 3 Incurred ordinary repairs on the computer of $360. Dec 31 Recorded 2014 depreciation on the basis of a four-year life and estimated residual value of $200. 2015 Dec 31 Recorded 2015 depreciation. 2016 Jan 1 Paid $1,600 for a major upgrade of the equipment. This expenditure is expected to increase the operating efficiency and capacity of the equipment.

Instructions Prepare journal entries to record the above events. (Show calculations.)