the homework hint says to treat the accounting fees as the sales on the income statement and since it is a service company there will be no COGS on the income statement.

Problem 11-1 The following balances are from the Cheyenne's Accounting Company 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 0X8 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 208 prepare a Balance Sheet, Income Statement, Statement of Owners' Equity and Statement of Cash Flows