Atlanta, Georgia (CNN) -- Comedian Katt Williams was a guest -- not a burglar -- at the Georgia home he is now accused of breaking into with a crowbar, his lawyer told CNN.

The house, on a horse farm in rural west Georgia, is owned by record producer Barry Hankerson, according to the police report.

Williams has been living in the Coweta County, Georgia, home for nearly a month while filming a movie produced by Hankerson, attorney William Briggs said.

Williams, 38, was arrested early Monday after an employee of Hankerson's -- Daniel Paul Broach -- called police and reported Williams had broken into the home with a crowbar, the police report said.

A Coweta County magistrate set bail at $40,000 in a hearing Monday afternoon, which lawyers were working to post, Briggs said.

The police report said about $3,500 in jewelry and collectable coins were stolen, which his lawyer said "we absolutely deny."

"Mr. Williams wears more than that in jewelry on his person," Briggs said.

Briggs said Williams argued with the employee, prompting the burglary report.

Hankerson spoke with investigators Monday afternoon to assure them Williams had his permission to stay indefinitely in the home he was accused of burglarizing, Briggs said.

Alan Clarke, the Georgia lawyer who presented Williams in court, said Williams' bond papers were being prepared.

"The community and law enforcement have been very welcoming and kind to him," Clarke said. "This is a misunderstanding which will work out quickly."

Williams smiled broadly while posing for a mug shot photo at the Coweta County jail early Monday.

Williams began his career as a stand-up comic, gaining attention in 1999 for comedy club appearances. Television appearances on the BET Network led to more success.

His 2006 HBO special "Katt Williams: Pimp Chronicles Pt.1" raised his profile to a higher level.

He has acted in several movies -- including Eddie Murphy's "Norbit" -- and he is the voice of popular cartoons -- including "The Boondocks."

His often raunchy style has drawn comparisons to comedy legend Richard Pryor.

His most recent CD release is "It's Pimpin' Pimpin'," according to his Web site.

Williams' was hospitalized in South Carolina in November 2008. His publicist at the time said it was for fatigue following a grueling road tour.

CNN's Carolina Sanchez and Alan Duke contributed to this report.