Direct Investment (FEPI) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'FIRST EQUITY PROPERTIES INC	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0000726516	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	1,057,628
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
Assets:	'	'
Notes receivable and accrued interest - affiliates	$2,259,016	$2,694,033
Cash and cash equivalents	874	346
Total assets	2,259,890	2,694,379
Liabilities and Shareholders' Equity	'	'
Notes payable and accrued interest - affiliates	1,081,475	1,493,010
Accounts payable - other	3,390	3,015
Accounts payable - affiliates	303,460	318,822
Total liabilities	1,388,325	1,814,847
Shareholders' equity	'	'
Common stock, $0.01 par value; 40,000,000 shares authorized; 1,057,628 issued and outstanding	10,576	10,576
Preferred stock, $0.01 par value; 4,960,000 shares authorized; none issued or outstanding	'	0
Paid in capital	1,376,682	1,376,682
Retained earnings (deficit)	-515,693	-507,726
Total shareholders' equity	871,565	879,532
Total liabilities and shareholders' equity	$2,259,890	$2,694,379

BALANCE_SHEETS_PARENTHETICALS

BALANCE SHEETS PARENTHETICALS (USD $)	Jun. 30, 2014	Dec. 31, 2013
Parentheticals	'	'
Common Stock, par value	$0.01	$0.01
Common Stock, shares authorized	40,000,000	40,000,000
Common Stock, shares issued	1,057,628	1,057,628
Common Stock, shares outstanding	1,057,628	1,057,628
Preferred Stock, par value	$0.01	$0.01
Preferred Stock, shares authorized	4,960,000	4,960,000

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues {1}	'	'	'	'
Interest income - affiliates	$53,560	$60,024	$110,722	$119,388
Total income	53,560	60,024	110,722	119,388
Operating Expenses	'	'	'	'
General and administrative - affiliates	15,000	15,000	30,000	30,000
General and administrative	3,872	8,703	5,954	4,296
Legal and professional fees	13,462	28,155	22,595	29,731
Total operating expenses	32,334	51,858	58,549	64,027
Income (loss) before interest expense and taxes	21,226	8,166	52,173	55,361
Other income (expense)	'	'	'	'
Interest expense - affiliates	-26,356	-36,481	-60,140	-53,800
Income (loss) before income taxes	-5,130	-28,315	-7,967	1,561
Income tax (expense) benefit	'	3,029	'	'
Net income (loss) applicable to common shareholders	($5,130)	($25,286)	($7,967)	$1,561
Earnings (loss) per share	($0.01)	($0.02)	($0.01)	'
Weighted average shares outstanding	1,057,628	1,057,628	1,057,628	1,057,628

STATEMENT_OF_CHANGES_IN_SHAREH

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)	Common Stock shares	Common Stock amount	Paid in capital	Retained Earnings (Deficit)	Total Equity
				USD ($)	USD ($)
Balances at Dec. 31, 2013	1,057,628	10,576	1,376,682	-507,726	879,532
Net income (loss)	'	'	'	($7,967)	($7,967)
Balances at Jun. 30, 2014	1,057,628	10,576	1,376,682	-515,693	871,565

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities	'	'
Net Income (Loss)	($7,967)	$1,561
(Increase) decrease in	'	'
Interest receivable - affiliates	130,032	-79,048
Increase (decrease) in	'	'
Accounts payable - others	375	411
Accounts payables - affiliates	-15,362	-42,500
Interest payable-affiliates	-97,535	-80,900
Net cash provided by (used for) operating activities	9,543	-200,476
Cash Flows from Investing Activities	'	'
Notes receivable - affiliates	304,985	482,168
Net cash provided by (used for) investing activities	304,985	482,168
Cash Flows from Financing Activities	'	'
Notes payable - affiliates	-314,000	-282,469
Net cash provided by (used for) financing activities	-314,000	-282,469
Net increase (decrease) in cash and cash equivalents	528	-777
Cash and cash equivalents at the beginning of period	346	1,542
Cash and cash equivalents at the end of period	874	765
Supplemental disclosures of cash flow information:	'	'
Cash paid for interest to affiliates	157,674	'
Cash paid for principal on notes payable	314,000	282,469
Cash received for principal on notes receivable	304,985	'
Cash received for interest on notes receivable	$240,754	$482,168

ORGANIZATION_AND_BASIS_OF_PRES

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
ORGANIZATION AND BASIS OF PRESENTATION	'
ORGANIZATION AND BASIS OF PRESENTATION	'
	NOTE 1.      ORGANIZATION AND BASIS OF PRESENTATION
	Organization
	First Equity Properties, Inc. is Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company’s principal line of business and source of revenue has been earnings on investments and interest on notes receivable.  Management of the Company is exploring alternatives, seeking to establish or acquire new business operations for the Company.  Management cannot predict or give any assurance that any new business enterprise will be acquired by the Company at any time in the near future.  FEPI’s common stock is publicly held however, no trading market presently exists for the shares of common stock and its value is therefore not determinable.
	Basis of presentation
	The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading.  In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included.
	The year-end Balance Sheet at December 31, 2013, was derived from the audited financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements.  For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
	Cost capitalization
	Costs related to planning and developing a project are capitalized and classified as Real Estate development costs in the Consolidated Balance Sheets. We capitalized certain operating expenses until development is substantially complete, but no later than one year from the cessation of major development activity.
	Newly issued accounting pronouncements
	We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted.  We do not believe that any such guidance will have a material effect on our financial position or results of operation.

FEDERAL_INCOME_TAXES

FEDERAL INCOME TAXES	6 Months Ended
	Jun. 30, 2014
FEDERAL INCOME TAXES	'
FEDERAL INCOME TAXES	'
	NOTE 2.  FEDERAL INCOME TAXES
	The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income Taxes”. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated.
	Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years.

NOTES_RECEIVABLE_AND_ACCRUED_I

NOTES RECEIVABLE AND ACCRUED INTEREST - AFFILIATE	6 Months Ended
	Jun. 30, 2014
NOTES RECEIVABLE AND ACCRUED INTEREST - AFFILIATE	'
NOTES RECEIVABLE AND ACCRUED INTEREST - AFFILIATE	'
	NOTE 3.  NOTES RECEIVABLE AND ACCRUED INTEREST – AFFILIATE
	Receivables from affiliates primarily consist of two notes with balances at June 30, 2014 of $1,625,513 and $522,781 which are payable in quarterly installments of interest only. The notes accrue interest at 10% per annum.  The maturity date of these notes has been extended to December 31, 2015.  The Company received $304,985 of principal which includes $45,739 of other receivable and $240,754 of interest on these notes during the six months ending June 30, 2014.
		6/30/14		12/31/13
	Notes receivable – affiliates
	Unsecured, due on demand, interest rate of 10%, due monthly	$	2,148,294	$	2,407,540
	Accrued interest – affiliates		110,722		240,754
	Other receivable – affiliates		-		45,739
	Total notes receivable – affiliates	$	2,259,016	$	2,694,033

NOTES_PAYABLE_AND_ACCRUED_INTE

NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE	6 Months Ended
	Jun. 30, 2014
NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE	'
NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE	'
	NOTE 4.  NOTES PAYABLE AND ACCRUED INTEREST – AFFILIATE
		2014		2013
	Uncollateralized notes payable – affiliates
		$	1,056,140	$	1,370,140
	due on demand, interest rate of 10%, payable quarterly
			25,336		122,870
	Accrued interest and intercompany - affiliates
		$	1,081,476	$	1,493,010
	Total notes payable – affiliates

RELATED_PARTIES_TRANSACTIONS

RELATED PARTIES TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
RELATED PARTIES TRANSACTIONS	'
Related Party Transactions Disclosure	'
	NOTE 5.  RELATED PARTIES TRANSACTIONS
	Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities.  Related party transactions may not always be favorable to our business and may include terns, conditions and agreements that are not necessarily beneficial to or in best interest of our company.
	The Company has an administrative agreement with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services.  The total expense of the six months ended June 30, 2014 was $30,000 which is included in General and Administrative expenses of the Statement of Operations.

ACCOUNTING_POLICIES_POLICIES

ACCOUNTING POLICIES (POLICIES)	6 Months Ended
	Jun. 30, 2014
Accounting Policies	'
Organization	'
	Organization
	First Equity Properties, Inc. is Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company’s principal line of business and source of revenue has been earnings on investments and interest on notes receivable.  Management of the Company is exploring alternatives, seeking to establish or acquire new business operations for the Company.  Management cannot predict or give any assurance that any new business enterprise will be acquired by the Company at any time in the near future.  FEPI’s common stock is publicly held however, no trading market presently exists for the shares of common stock and its value is therefore not determinable.
Basis of presentation	'
	Basis of presentation
	The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading.  In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included.
	The year-end Balance Sheet at December 31, 2013, was derived from the audited financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements.  For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
Cost capitalization	'
	Cost capitalization
	Costs related to planning and developing a project are capitalized and classified as Real Estate development costs in the Consolidated Balance Sheets. We capitalized certain operating expenses until development is substantially complete, but no later than one year from the cessation of major development activity.
Newly issued accounting pronouncements	'
	Newly issued accounting pronouncements
	We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted.  We do not believe that any such guidance will have a material effect on our financial position or results of operation.

NOTES_RECIEVABLE_AND_ACCRUED_I

NOTES RECIEVABLE AND ACCRUED INTEREST - AFFILIATE (Table)	6 Months Ended
	Jun. 30, 2014
NOTES RECIEVABLE AND ACCRUED INTEREST - AFFILIATE	'
NOTES RECEIVABLE AND ACCRUED INTEREST - AFFILIATE	'
	The Company received $304,985 of principal which includes $45,739 of other receivable and $240,754 of interest on these notes during the six months ending June 30, 2014.
		6/30/14		12/31/13
	Notes receivable – affiliates
	Unsecured, due on demand, interest rate of 10%, due monthly	$	2,148,294	$	2,407,540
	Accrued interest – affiliates		110,722		240,754
	Other receivable – affiliates		-		45,739
	Total notes receivable – affiliates	$	2,259,016	$	2,694,033

NOTES_PAYABLE_AND_ACCRUED_INTE1

NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE ( Table)	6 Months Ended
	Jun. 30, 2014
NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE {2}	'
NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE	'
		2014		2013
	Uncollateralized notes payable – affiliates
		$	1,056,140	$	1,370,140
	due on demand, interest rate of 10%, payable quarterly
			25,336		122,870
	Accrued interest and intercompany - affiliates
		$	1,081,476	$	1,493,010
	Total notes payable – affiliates

NOTES_RECIEVABLE_AND_ACCRUED_I1

NOTES RECIEVABLE AND ACCRUED INTEREST - AFFILIATE (DETAILS) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Notes receivable - affiliates {1}	'	'
Unsecured, due on demand, interest rate of 10%, due monthly	$2,148,294	$2,407,540
Accrued interest - affiliates	110,722	240,754
Other receivable - affiliates	'	211,525
Total notes and accounts receivable - affiliates	$2,259,016	$2,694,033

Receivables_affiliates_DETAILS

Receivables affiliates (DETAILS) (USD $)	Jun. 30, 2014
Receivables affiliates	'
Receivable affiliates primary note 1 mature on 31/12/2015	$1,625,513
Receivable affiliates primary note 2 31/12/2015	522,781
Notes accrues interest per annum	10.00%
The Company received of principal	304,985
Company received interest in June on these notes.	240,754
Amount of other receivable included in receipts	$45,739

NOTES_PAYABLE_AND_ACCRUED_INTE2

NOTES PAYABLE AND ACCRUED INTEREST - AFFILIATE (DETAILS) (USD $)	Jun. 30, 2014	Dec. 31, 2013
NOTES PAYABLE	'	'
Uncollateralized notes payable - affiliates due on demand, interest at Prime + 1%, payable quarterly	$1,056,140	$1,370,140
Accrued interest and intercompany - affiliates	25,336	122,870
Total notes payable - affiliates	$1,081,476	$1,493,010

RELATED_PARTIES_TRANSACTIONS_D

RELATED PARTIES TRANSACTIONS (DETAILS) (USD $)	6 Months Ended
	Jun. 30, 2014
RELATED PARTIES TRANSACTIONS	'
Total expense for accounting and administrative services.	$30,000