Logo Creating Software

What software can be used to create a logo on my iMac?

I want to create a logo and distort the text and background, etc. What I can use photo already on my computer. I downloaded iWorks.

Adobe Photoshop CS3 can be used to see here! http://www.youtube.com/watch?v=r2btqUFOaTE

Creating Business Cards and Logos with The Logo Creator – Part 2