You are an attorney-at-law and is involved in a private practice at a given Company for a duration of time also, You are a director of a company receiving a monthly director's fee of x amount. You then applied for a loan from a bank for the law practice requiring to submit financial statements for a twelve months. However the system of record keeping for the law practice has been in a state of disarray with invoices unsorted and unrecorded.
Provide advice on the following situation how you will handle this:
(a) Should the director's fee be reported in the financial statements?
(b) Should you record your personal electronics, at your residence worth for example, $45,000 for which you owes the credit union $18,000.
(c) How should you record a laptop purchased for the law practice at $5,000 which was less than the regular price of $7,500?
(d) The purpose of the financial statements to the bank.
REQUIRED: Advise how each of the areas identified above and the need to keep proper accounting books and records for the law practice.