Iphone 4 software phone wont work or restore., Iphone 4 software phone wont work or restore.

My phone was working fine, I turned it off. Later turned it back on and it told me to connect to itunes so when I got home I did it told me to restore so I did it went so far then came up saying it is damaged, took it to the phone shop and he checked for water damage and it was fine. He got it to work but wont connect through itunes he said its a software issue and needs to goto apple anyone know how to fix this or how much it will cost phone is 2 years old in november.
Thanks in advance

do I need warranty to have it replaced as I haven't took out the extended warranty on it it will be 2 yrs old November

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