Problem 12-1 The following balances are from the Cheyenne's Accounting Company 20X8 20,000 50,000 3,000 190,000 60,000 70,000 5,000 20X7 10,000 42,000 4,000 180,000 50,000 40,000 10,000 Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries Payable Taxes Payable Note Payable Common Stock (S1 Par) Paid In Capital Retained Earnings Accounting Fees Salary Expense Rent Expense Interest Expense Depreciation Expense 100,000 500 4,500 31,000 70,000 2,000 18,000 35,000 100,000 40,000 24,000 6,000 10,000 The common stock outstanding was 500 shares on January 1 and then 1,500 shares were sold on June 30. During 20X8, the company paid a dividend of No equipment was sold during the year. The tax rate is 30% and 1/2 of 20X8 were paid in 20X8 and the rest will be paid in 20X9. The Note Payable requires an annual payment of $30,000 principal plus interest at 6% on December 31 of each year. (Note- this is a service company- no COGS!) For the year ended 20X8 prepare a Balance Sheet, Income Statement, Statement of Owners' Equity and Statement of Cash Flows