I have a question for this Adjusting Entry:

(please see bold entries)

Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares of $5 par common stock, and 100,000 shares of $30 par, 3%, preferred stock. As of January 1, 2018, there were 25,000 shares of common stock issued and outstanding and 4,000 shares of preferred stock issued and outstanding.

Jan 1 Issued 13,000 shares of $5 par common stock at $19, receiving cash.

Jan 1 Issued 6,700 shares of $30 par, 3%, preferred stock at $69 for cash.

Feb 1 Purchased equipment for $220,000, paying $20,000 cash and financing the remainder with a 180-day, 5% note payable.

My answer:

Dr. Equipment-220,000

Cr. Cash- 20,000

Cr. Note Payable- 200,000

ADJUSTING ENTRIES

(1) The employees' accrued vacation pay at the end of the year was $12,482.

(2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $11,020.

Would I divide 220,000 by 9, and subtract that answer by $11,020?