Direct Investment (FEPI) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document and Entity Information:
Entity Registrant Name	FIRST EQUITY PROPERTIES INC
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Trading Symbol	fepi
Amendment Flag	false
Entity Central Index Key	726,516
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	2,016
Document Fiscal Period Focus	Q3

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets {1}
Notes receivable and accrued interest - related parties	$ 2,106,199	$ 2,106,229
Cash and cash equivalents	55	867
Total assets	2,106,254	2,107,096
Liabilities and Shareholders' Equity
Notes payable and accrued interest - related parties	836,953	836,953
Accounts payable - other	3,902	669
Accounts payable - related parties	379,608	381,958
Total liabilities	1,220,463	1,219,580
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)	(501,467)	(499,742)
Total shareholders' equity	885,791	887,516
Total liabilities and shareholders' equity	$ 2,106,254	$ 2,107,096

BALANCE SHEET PARENTHETICALS

BALANCE SHEET PARENTHETICALS - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Parentheticals
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, shares authorized	4,960,000	4,960,000
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

STATEMENTS OF OPERATIONS (unaud

STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue
Revenue from operations	$ 0
Total revenue	0
Operating Expenses
Administrative fees - related parties	15,000	$ 15,000	$ 45,000	$ 45,000
General and administrative	8,700	7,486	49,665	44,385
Total operating expenses	23,700	22,486	94,665	89,385
Income (loss) before interest expense and taxes	(23,700)	(22,486)	(94,665)	(89,385)
Other income (expense)
Interest income - related parties	51,783	51,783	154,224	156,229
Interest expense - related parties	(20,577)	(20,577)	(61,284)	(62,722)
Net income (loss) applicable to common shareholders	$ 7,506	$ 8,720	$ (1,725)	$ 4,122
Earnings (loss) per share	$ 0.01	$ 0.01
Weighted average shares outstanding	1,057,628	1,057,628	1,057,628	1,057,628

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - USD ($)	Common Stock Shares	Common Stock Amount	Paid in Capital	Retained Earnings (Deficit)	Total Equity
Balances at Jan. 01, 2016	1,057,628	10,576	1,376,682	(499,742)	887,516
Net income (loss)				$ (1,725)	$ (1,725)
Balances at Sep. 30, 2016	1,057,628	10,576	1,376,682	(501,467)	885,791

STATEMENTS OF CASH FLOWS (unaud

STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities
Net Income (Loss)	$ (1,725)	$ 4,122
(Increase) decrease in
Interest receivable - related parties	30	1,870
Accounts payable - other	3,233	611
Accounts payable - related parties	(2,350)	(30,517)
Interest payable - related parties		(1,132)
Net cash provided by (used for) operating activities	(812)	(25,046)
Cash Flows from Investing Activities
Notes receivable - related parties		64,653
Net cash provided by (used for) investing activities		64,653
Cash Flows from Financing Activities
Notes payable - related parties		(39,765)
Net cash provided by (used for) financing activities		(39,765)
Net increase (decrease) in cash and cash equivalents	(812)	(158)
Cash and cash equivalents at the beginning of period	867	1,776
Cash and cash equivalents at the end of period	55	1,618
Supplemental disclosures of cash flow information:
Cash paid for interest to related parties	61,284	63,856
Cash received for interest on notes receivable	$ 154,254	$ 158,099

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
ORGANIZATION AND BASIS OF PRESENTATION:
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Organization and business First Equity Properties, Inc. is a 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 is currently investments and interest on notes receivable. The Company is currently in the business of real estate investing. FEPI is a publicly traded company however, no trading market presently exists for the shares of common stock and its value is therefore not determinable. Basis of presentation The unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2015. Operating results for the nine month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2016. 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	9 Months Ended
	Sep. 30, 2016
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 IN

NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	9 Months Ended
	Sep. 30, 2016
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES:
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	NOTE 3. NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES Receivables from related parties primarily consist of two notes of $1,565,292 and $489,154 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, 2017. A payment was received in March 2016 for $51,783 which paid the remaining interest balance due in 2015. Also, a payment was received in July 2016 for $102,441which made the interest receivable balances current. 2016 2015 Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 2,054,446 $ 2,054,446 Accrued interest – related parties 51,753 51,783 Total notes and accounts receivable – related parties $ 2,106,199 $ 2,106,229

NOTES PAYABLE AND ACCRUED INTER

NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	9 Months Ended
	Sep. 30, 2016
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES:
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	NOTE 4. NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES 2016 2015 Uncollateralized notes payable – related parties due on demand, interest rate of 10%, payable quarterly $ 816,376 $ 816,376 Accrued interest and intercompany – related parties 20,577 20,577 Total notes payable – related parties $ 836,953 $ 836,953 Long term debt and accrued interest is due December 31, 2017. Subsequent payments for interest on notes payable were made in October 2016 totaling $20,577 which makes the notes and interest payable balances current.

RELATED PARTIES TRANSACTIONS

RELATED PARTIES TRANSACTIONS	9 Months Ended
	Sep. 30, 2016
RELATED PARTIES TRANSACTIONS:
RELATED PARTIES TRANSACTIONS	NOTE 5. RELATED PARTIES TRANSACTIONS Transactions involving related parties The Company has an administrative agreement with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services. The total expense for the nine months ended September 30, 2016 was $45,000 which is included in General and Administrative expenses of the Statement of Operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
SUBSEQUENT EVENTS:
SUBSEQUENT EVENTS	NOTE 6. SUBSEQUENT EVENTS The Company has evaluated subsequent events through November 14, 2016, the date the financial statements were available to be issued, and has determined that there have been subsequent payments received in October 2016 for interest on notes receivable and subsequent payments made in October 2016 for interest owed on notes payable.

ACCOUNTIING POLICIES (Policies)

ACCOUNTIING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies:
Organization and business	Organization and business First Equity Properties, Inc. is a 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 is currently investments and interest on notes receivable. The Company is currently in the business of real estate investing. FEPI is a publicly traded company 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 unaudited financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present such information. All such adjustments are of a normal recurring nature. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2015. Operating results for the nine month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2016.
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 RECEIVABLE AND ACCRUED 14

NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2016
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables):
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	2016 2015 Notes receivable – related parties Unsecured, due on demand, interest rate of 10%, due monthly $ 2,054,446 $ 2,054,446 Accrued interest – related parties 51,753 51,783 Total notes and accounts receivable – related parties $ 2,106,199 $ 2,106,229

NOTES PAYABLE AND ACCRUED INT15

NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2016
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables):
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	Uncollateralized notes payable – related parties 2016 2015 due on demand, interest rate of 10%, payable quarterly $ 816,376 $ 816,376 Accrued interest and intercompany – related parties 20,577 20,577 Total notes payable – related parties $ 836,953 $ 836,953

NOTES RECEIVABLE AND ACCRUED 16

NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (DETAILS) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Notes receivable - related parties {1}
Unsecured, due on demand, interest rate of 10%, due monthly	$ 2,054,446	$ 2,054,446
Accrued interest - related parties	51,753	51,783
Total notes and accounts receivable - related parties	$ 2,106,199	$ 2,106,229

RECEIVABLES RELATED PARTIES (DE

RECEIVABLES RELATED PARTIES (DETAILS)	Sep. 30, 2016USD ($)
Receivables Related Parties Details
Receivable related parties primary note 1 mature on December 31, 2017	$ 1,565,292
Receivable related parties primary note 2	$ 489,154
Notes accrued interest per annum at	10.00%
Payment received in March 2016	$ 51,783
Subsequent payments for interest on notes receivable were received in July 2016	102,441
Subsequent payments for interest on notes receivable were received in October 2016	$ 51,753

NOTES PAYABLE AND ACCRUED INT18

NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (DETAILS) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES DETAILS
Uncollateralized notes payable - related parties due on demand, interest rate of 10%, payable quarterly	$ 816,376	$ 816,376
Accrued interest and intercompany - related parties	20,577	20,577
Total notes payable - related parties	836,953	$ 836,953
Subsequent payments for interest on notes payable were made in October 2016 totaling	$ 20,577

RELATED PARTIES TRANSACTIONS (D

RELATED PARTIES TRANSACTIONS (DETAILS)	9 Months Ended
	Sep. 30, 2016USD ($)
Related Parties Transactions Details
Total expense	$ 45,000