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 |