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Solutions Manual, Chapter 1 1
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Chapter 1
Accounting in Business
QUESTIONS
1. The purpose of accounting is to provide decision makers with relevant and reliable
information to help them make better decisions. Examples include information for people
making investments, loans, and business plans.
2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for
people who can design accounting systems, supervise their operation, analyze complex
transactions, and interpret reports. Demand also exists for people who can effectively use
computers to prepare and analyze accounting reports. Technology will never substitute for
qualified people with abilities to prepare, use, analyze, and interpret accounting
information.
3. External users and their uses of accounting information include: (a) lenders, to measure
the risk and return of loans; (b) shareholders, to assess whether to buy, sell, or hold their
shares; (c) directors, to oversee their interests in the organization; (d) employees and labor
unions, to judge the fairness of wages and assess future employment opportunities; and
(e) regulators, to determine whether the organization is complying with regulations. Other
users are voters, legislators, government officials, contributors to nonprofits, suppliers and
customers.
4. Business owners and managers use accounting information to help answer questions such
as: What resources does an organization own? What debts are owed? How much income
is earned? Are expenses reasonable for the level of sales? Are customers’ accounts being
promptly collected?
5. Service businesses include: Standard and Poor’s, Dun & Bradstreet, Merrill Lynch,
Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential. Businesses
offering products include Nike, Reebok, Gap, Apple Computer, Ford Motor Co., Philip
Morris, Coca-Cola, Best Buy, and Circuit City.
6. The internal role of accounting is to serve the organization’s internal operating functions. It
does this by providing useful information for internal users in completing their tasks more
effectively and efficiently. By providing this information, accounting helps the organization
reach its overall goals.
7. Accounting professionals offer many services including auditing, management advice, tax
planning, business valuation, and money management.
8. Marketing managers are likely interested in information such as sales volume, advertising
costs, promotion costs, salaries of sales personnel, and sales commissions.
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Fundamental Accounting Principles, 21st Edition
2
9. Accounting is described as a service activity because it serves decision makers by
providing information to help them make better business decisions.
10. Some accounting-related professions include consultant, financial analyst, underwriter,
financial planner, appraiser, FBI investigator, market researcher, and system designer.
11. Ethics rules require that auditors avoid auditing clients in which they have a direct
investment, or if the auditor’s fee is dependent on the figures in the client’s reports. This
will help prevent others from doubting the quality of the auditor’s report.
12. In addition to preparing tax returns, tax accountants help companies and individuals plan
future transactions to minimize the amount of tax to be paid. They are also actively
involved in estate planning and in helping set up organizations. Some tax accountants work
for regulatory agencies such as the IRS or the various state departments of revenue.
These tax accountants help to enforce tax laws.
13. The objectivity concept means that financial statement information is supported by
independent, unbiased evidence other than someone’s opinion or imagination. This
concept increases the reliability and verifiability of financial statement information.
14. This treatment is justified by both the cost principle and the going-concern assumption.
15. The revenue recognition principle provides guidance for managers and auditors so they
know when to recognize revenue. If revenue is recognized too early, the business looks
more profitable than it is. On the other hand, if revenue is recognized too late the business
looks less profitable than it is. This principle demands that revenue be recognized when it
is both earned (when service or product provided) and can be measured reliably. The
amount of revenue should equal the value of the assets received or expected to be
received from the business’s operating activities covering a specific time period.
16. Business organizations can be organized in one of three basic forms: sole proprietorship,
partnership, or corporation. These forms have implications for legal liability, taxation,
continuity, number of owners, and legal status as follows:
Proprietorship Partnership Corporation
Business entity yes yes yes
Legal entity no no yes
Limited liability no* no* yes
Unlimited life no no yes
Business taxed no no yes
One owner allowed yes no yes
*Proprietorships and partnerships that are set up as LLCs provide limited liability.
17. (a) Assets are resources owned or controlled by a company that are expected to yield
future benefits. (b) Liabilities are creditors’ claims on assets that reflect obligations to
provide assets, products or services to others. (c) Equity is the owner’s claim on assets
and is equal to assets minus liabilities. (d) Net assets refer to equity.
18. Equity is increased by investments from the owner and by net income (which is the excess
of revenues over expenses). It is decreased by withdrawals by the owner and by a net loss
(which is the excess of expenses over revenues).
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Solutions Manual, Chapter 1 3
19. Accounting principles consist of (a) general and (b) specific principles. General principles
are the basic assumptions, concepts, and guidelines for preparing financial statements.
They stem from long-used accounting practices. Specific principles are detailed rules used
in reporting on business transactions and events. They usually arise from the rulings of
authoritative and regulatory groups such as the Financial Accounting Standards Board or
the Securities and Exchange Commission.
20. Revenue (or sales) is the amount received from selling products and services.
21. Net income (also called income, profit or earnings) equals revenues minus expenses (if
revenues exceed expenses). Net income increases equity. If expenses exceed revenues,
the company has a net loss. Net loss decreases equity.
22. The four basic financial statements are: income statement, statement of owner’s equity,
balance sheet, and statement of cash flows.
23. An income statement reports a company’s revenues and expenses along with the resulting
net income or loss over a period of time.
24. Rent expense, utilities expense, administrative expenses, advertising and promotion
expenses, maintenance expense, and salaries and wages expenses are some examples of
business expenses.
25. The statement of owner’s equity explains the changes in equity from net income or loss,
and from any owner contributions and withdrawals over a period of time.
26. The balance sheet describes a company’s financial position (types and amounts of assets,
liabilities, and equity) at a point in time.
27. The statement of cash flows reports on the cash inflows and outflows from a company’s
operating, investing, and financing activities.
28. Return on assets, also called return on investment, is a profitability measure that is useful
in evaluating management, analyzing and forecasting profits, and planning activities. It is
computed as net income divided by the average total assets. For example, if we have an
average annual balance of $100 in a bank account and it earns interest of $5 for the year,
then our return on assets is $5 / $100 or 5%. The return on assets is a popular measure for
analysis because it allows us to compare companies of different sizes and in different
industries.
29A
. Return refers to income, and risk is the uncertainty about the return we expect to make.
The lower the risk of an investment, the lower the expected return. For example, savings
accounts pay a low return because of the low risk of a bank not returning the principal with
interest. Higher risk implies higher, but riskier, expected returns.
30B
. Organizations carry out three major activities: financing, investing, and operating. Financing
provides the means used to pay for resources. Investing refers to the acquisition and
disposing of resources necessary to carry out the organization’s plans. Operating activities
are the actual carrying out of these plans. (Planning is the glue that connects these
activities, including the organization’s ideas, goals and strategies.)
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Fundamental Accounting Principles, 21st Edition
4
31B
. An organization’s financing activities (liabilities and equity) pay for investing activities
(assets). An organization cannot have more or less assets than its liabilities and equity
combined and, similarly, it cannot have more or less liabilities and equity than its total
assets. This means: assets = liabilities + equity. This relation is called the accounting
equation (also called the balance sheet equation), and it applies to organizations at all
times.
32. The dollar amounts in Polaris’ financial statements are rounded to the nearest thousand
($1,000). Polaris’ consolidated statement of income (or income statement) covers the year
ended December 31, 2011. Polaris also reports comparative income statements for the
previous two years.
33. At March 31, 2011, Arctic Cat had ($ in thousands) assets of $272,906, liabilities of
$89,870, and equity of $183,036.
34. Confirmation of KTM’s accounting equation follows (numbers in EUR thousands):
Assets = Liabilities + Equity
485,775 = 266,000 + 219,775
35. The independent auditor for Polaris, is Ernst & Young, LLP. The auditor expressly states
that “our responsibility is to express an opinion on these consolidated financial statements
and schedule based on our audits.” The auditor also states that “these financial statements
and the schedule are the responsibility of the Company’s management.”
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Solutions Manual, Chapter 1 5
QUICK STUDIES
Quick Study 1-1
(a) and (b)
GAAP: Generally Accepted Accounting Principles
Importance: GAAP are the rules that specify acceptable accounting practices.
SEC: Securities and Exchange Commission
Importance: The SEC is charged by Congress to set reporting rules for
organizations that sell ownership shares to the public. The SEC
delegates part of this responsibility to the FASB.
FASB: Financial Accounting Standards Board
Importance: FASB is an independent group of full-time members who are
responsible for setting accounting rules.
IASB: International Accounting Standards Board.
Importance: Its purpose is to issue standards that identify preferred practices in
the desire of harmonizing accounting practices across different
countries. The vast majority of countries and financial exchanges
support its activities and objectives.
IFRS: International Financial Reporting Standards.
Importance: A global set of accounting standards issued by the IASB. Many
countries require or permit companies to comply with IFRS in
preparing their financial statements. The FASB is undergoing a
process with the IASB to converge GAAP and IFRS and to create
a single set of accounting standards for global use.
Quick Study 1-2
a. E g. E
b. E h. E
c. E i. I
d. E j. E
e. I k. E
f. E l. I
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Fundamental Accounting Principles, 21st Edition
6
Quick Study 1-3
Internal controls serve several purposes:
 They involve monitoring an organization’s activities to promote efficiency and
to prevent wrongful use of its resources.
 They help ensure the validity and credibility of accounting reports.
 They are often crucial to effective operations and reliable reporting.
More generally, the absence of internal controls can adversely affect the
effectiveness of domestic and global financial markets.
Examples of internal controls include cash registers with internal tapes or drives,
scanners at doorways to identify tagged products, overhead video cameras,
security guards, and many others.
Quick Study 1-4
Accounting professionals practice in at least four main areas. These four areas,
along with a listing of some work opportunities in each, are:
1. Financial accounting
 Preparation
 Analysis
 Auditing (external)
 Consulting
 Investigation
2. Managerial accounting
 Cost accounting
 Budgeting
 Auditing (internal)
 Consulting
3. Tax accounting
 Preparation
 Planning
 Regulatory
 Consulting
 Investigation
4. Accounting-related
 Lending
 Consulting
 Analyst
 Investigator
 Appraiser
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Solutions Manual, Chapter 1 7
Quick Study 1-5
The choice of an accounting method when more than one alternative method is
acceptable often has ethical implications. This is because accounting information
can have major impacts on individuals’ (and firms’) well-being.
To illustrate, many companies base compensation of managers on the amount of
reported income. When the choice of an accounting method affects the amount
of reported income, the amount of compensation is also affected. Similarly, if
workers in a division receive bonuses based on the division’s income, its
computation has direct financial implications for these individuals.
Quick Study 1-6
a. Revenue recognition principle
b. Cost principle (also called historical cost)
c. Business entity assumption
Quick Study 1-7
Assets = Liabilities + Equity
$700,000 (a) $280,000 $420,000
$500,000 (b) $250,000 (b) $250,000
Quick Study 1-8
Assets = Liabilities + Equity
$75,000 (a) $35,000 $40,000
(b) $95,000 $25,000 $70,000
$85,000 $20,000 (c) $65,000
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Fundamental Accounting Principles, 21st Edition
8
Quick Study 1-9
(a) Examples of business transactions that are measurable include:
 Selling products and services.
 Collecting funds from dues, taxes, contributions, or investments.
 Borrowing money.
 Purchasing products and services.
(b) Examples of business events that are measurable include:
 Decreases in the value of securities (assets).
 Bankruptcy of a customer owing money.
 Technological advances rendering patents (or other assets) worthless.
 An “act of God” (casualty) that destroys assets.
Quick Study 1-10
a. For December 31, 2011, the account and its dollar amount (in thousands) for
Polaris are:
(1) Assets = $1,228,024
(2) Liabilities = $ 727,968
(3) Equity = $ 500,056
b. Using Polaris’ amounts from (a) we verify that (in millions):
Assets = Liabilities + Equity
$1,228,024 = $ 727,968 + $ 500,056
Quick Study 1-11
[Code: Income statement (I), Balance sheet (B), Statement of owner’s equity (E), or
Statement of cash flows (CF).]
a. B d. B g. CF
b. CF e. I h. I
c. E* f. B i. B
*The more advanced student might know that this item could also appear on the CF.
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Solutions Manual, Chapter 1 9
Quick Study 1-12
Return on assets = = = 8.2%
Interpretation: Its return of 8.2% is slightly above the 8% of its competitors. Home
Depot’s performance can be rated as above average.
Quick Study 1-13 (10 minutes)
a. International Financial Reporting Standards (IFRS)
b. Convergence desires to achieve a single set of accounting standards for
global use.
c. The FASB is to develop a transition plan to effect these changes over the
next five years or so. For updates on this roadmap, we can check with the
AICPA (IFRS.com), FASB (FASB.org), and IASB (IASB.org.uk).
$3,338
$40,501
Net income
Average total assets
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Fundamental Accounting Principles, 21st Edition
10
EXERCISES
Exercise 1-1 (10 minutes)
1. A 5. C
2. B 6. C
3. A 7. B
4. A 8. B
Exercise 1-2 (10 minutes)
C 1. Analyzing and interpreting reports
C 2. Presenting financial information
R 3. Maintaining a log of service costs
R 4. Measuring the costs of a product
C 5. Preparing financial statements
I 6. Establishing revenues generated from a product
I 7. Determining employee tasks behind a service
Exercise 1-3 (20 minutes)
Part A.
1. I 5. I
2. I 6. E
3. E 7. I
4. E 8. I
Part B.
1. I 5. I
2. E 6. E
3. I 7. I
4. E
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Solutions Manual, Chapter 1 11
Exercise 1-4 (20 minutes)
a. Situations involving ethical decision making in coursework include
performing independent work on examinations and individually completing
assignments/projects. It can also extend to promptly returning reference
materials so others can enjoy them, and to properly preparing for class to
efficiently use the time and question period to not detract from others’
instructional benefits.
b. Managers face several situations demanding ethical decision making in their
dealings with employees. Examples include fairness in performance
evaluations, salary adjustments, and promotion recommendations. They can
also include avoiding any perceived or real harassment of employees by the
manager or any other employees. It can also include issues of confidentiality
regarding personal information known to managers.
c. Accounting professionals who prepare tax returns can face situations where
clients wish to claim deductions they cannot substantiate. Also, clients
sometimes exert pressure to use methods not allowed or questionable under
the law. Issues of confidentiality also arise when these professionals have
access to clients’ personal records.
d. Auditing professionals with competing audit clients are likely to learn
valuable information about each client that the other clients would benefit
from knowing. In this situation the auditor must take care to maintain the
confidential nature of information about each client.
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Fundamental Accounting Principles, 21st Edition
12
Exercise 1-5 (10 minutes)
Code Description Principle/Assumption
E 1. Usually created by a pronouncement from an
authoritative body.
Specific accounting
principle
G 2. Financial statements reflect the assumption that the
business continues operating.
Going-concern
assumption
A 3. Derived from long-used and generally accepted
accounting practices.
General accounting
principle
C 4. Every business is accounted for separately from its
owner or owners.
Business entity
assumption
D 5. Revenue is recorded only when the earnings
process is complete.
Revenue recognition
principle
B 6. Information is based on actual costs incurred in
transactions.
Cost principle
F 7. A company records the expenses incurred to
generate the revenues reported.
Matching (expense
recognition) principle
H. 8. A company reports details behind financial
statements that would impact users' decisions.
Full disclosure principle
Exercise 1-6 (10 minutes)
1. C 4. A
2. F 5. G
3. D
Exercise 1-7 (10 minutes)
a. Corporation e. Sole proprietorship
b. Sole proprietorship f. Sole proprietorship
c. Corporation g. Corporation
d. Partnership
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Solutions Manual, Chapter 1 13
Exercise 1-8 (20 minutes)
a. Using the accounting equation:
Assets = Liabilities + Equity
$123,000 = $47,000 + ?
Thus, equity = $76,000
b. Using the accounting equation at the beginning of the year:
Assets = Liabilities + Equity
$300,000 = ? + $100,000
Thus, beginning liabilities = $200,000
Using the accounting equation at the end of the year:
Assets = Liabilities + Equity
$300,000 + $80,000 = $200,000+ $50,000 + ?
$380,000 = $250,000 + ?
Thus, ending equity = $130,000
Alternative approach to solving part (b):
Assets($80,000) = Liabilities($50,000) + Equity(?)
where “” refers to “change in.”
Thus: Ending Equity = $100,000 + $30,000 = $130,000
c. Using the accounting equation at the end of the year:
Assets = Liabilities + Equity
$190,000 = $70,000 - $5,000 + ?
$190,000 = $65,000 + $125,000
Using the accounting equation at the beginning of the year:
Assets = Liabilities + Equity
$190,000 - $60,000 = $70,000 + ?
$130,000 = $70,000 + ?
Thus: Beginning Equity = $60,000
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Fundamental Accounting Principles, 21st Edition
14
Exercise 1-9 (10 minutes)
Assets = Liabilities + Equity
(a) $ 65,000 = $ 20,000 + $45,000
$100,000 = $ 34,000 + (b) $66,000
$154,000 = (c) $114,000 + $40,000
Exercise 1-10 (15 minutes)
Examples of transactions that fit each case include:
a. Cash withdrawals (or some other asset) paid to the owner of the business;
OR, the business incurs an expense paid in cash.
b. Business purchases equipment (or some other asset) on credit.
c. Business signs a note payable to extend the due date on an account
payable; OR, the business renegotiates a liability (perhaps to obtain a lower
interest rate.)
d. Business pays an account payable (or some other liability) with cash (or
some other asset).
e. Business purchases office supplies (or some other asset) for cash (or some
other asset).
f. Business incurs an expense that is not yet paid (for example, when
employees earn wages that are not yet paid).
g. Owner invests cash (or some other asset) in the business; OR, the business
earns revenue and accepts cash (or another asset).
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Solutions Manual, Chapter 1 15
Exercise 1-11 (30 minutes)
Assets = Liabilities + Equity
Cash +
Accounts
Receivable +
Equip-
ment =
Accounts
Payable +
Holden,
Capital –
Holden,
With-
drawals
+ Revenues – Expenses
a. +$60,000 + $15,000 = + $75,000
b. – 1,500 ______ ______ – $1,500
Bal. 58,500 + + 15,000 = + 75,000 – 1,500
c. _______ + 10,000 +$10,000 ______ _____
Bal. 58,500 + + 25,000 = 10,000 + 75,000 – 1,500
d. + 2,500 ______ _______ ______ + $2,500 _____
Bal. 61,000 + + 25,000 = 10,000 + 75,000 + 2,500 – 1,500
e. _______ + $8,000 ______ _______ ______ + 8,000 _____
Bal. 61,000 + 8,000 + 25,000 = 10,000 + 75,000 + 10,500 – 1,500
f. – 6,000 ______ + 6,000 _______ ______ _____ _____
Bal. 55,000 + 8,000 + 31,000 = 10,000 + 75,000 + 10,500 – 1,500
g. – 3,000 ______ ______ _______ ______ _____ – 3,000
Bal. 52,000 + 8,000 + 31,000 = 10,000 + 75,000 + 10,500 – 4,500
h. + 5,000 - 5,000 ______ _______ ______ _____ _____
Bal. 57,000 + 3,000 + 31,000 = 10,000 + 75,000 + 10,500 – 4,500
i. – 10,000 ______ ______ – 10,000 ______ _____ _____
Bal. 47,000 + 3,000 + 31,000 = 0 + 75,000 + 10,500 – 4,500
j. – 1,000 ______ ______ _______ ______ – $1,000 _____ _____
Bal. $46,000 + $3,000 + $31,000 = $ 0 + $75,000 – $1,000 + $10,500 – $4,500
Exercise 1-12 (20 minutes)
a. Started the business with the owner investing $40,000 cash in the business.
b. Purchased office supplies for $3,000 by paying $2,000 cash and putting the
remaining $1,000 balance on credit.
c. Purchased office furniture by paying $8,000 cash.
d. Billed a customer $6,000 for services earned.
e. Provided services for $1,000 cash.
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Fundamental Accounting Principles, 21st Edition
16
Exercise 1-13 (20 minutes)
a. Purchased land for $4,000 cash.
b. Purchased $1,000 of office supplies on credit.
c. Billed a client $1,900 for services provided.
d. Paid the $1,000 account payable created by the credit purchase of office
supplies in transaction b.
e. Collected $1,900 cash for the billing in transaction c.
Exercise 1-14 (15 minutes)
REAL ANSWERS
Income Statement
For Month Ended October 31
Revenues
Consulting fees earned......................... $14,000
Expenses
Salaries expense .................................. $7,000
Rent expense........................................ 3,550
Telephone expense .............................. 760
Miscellaneous expenses....................... 580
Total expenses...................................... 11,890
Net income ................................................... $ 2,110
Exercise 1-15 (15 minutes)
REAL ANSWERS
Statement of Owner’s Equity
For Month Ended October 31
King, Capital, October 1 ..................................... $ 0
Add: Owner’s investment............................. 84,000
Net income (from Exercise 1-14) ........... 2,110
86,110
Less: Withdrawals by owner ......................... 2,000
King, Capital, October 31 ................................... $84,110
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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Solutions Manual, Chapter 1 17
Exercise 1-16 (15 minutes)
REAL ANSWERS
Balance Sheet
October 31
Assets Liabilities
Cash ............................... $11,360 Accounts payable.................... $ 8,500
Accounts receivable ....... 14,000
Office supplies................ 3,250 Equity
Office equipment ............ 18,000 King, Capital* ............. 84,110
Land ............................... 46,000 _______
Total assets .................... $92,610 Total liabilities and equity........ $92,610
* For the computation of this amount see Exercise 1-15.
Exercise 1-17 (15 minutes)
REAL ANSWERS
Statement of Cash Flows
For Month Ended October 31
Cash flows from operating activities
Cash received from customers................................................ $ 0
Cash paid to employees1
........................................................ (1,750)
Cash paid for rent.................................................................... (3,550)
Cash paid for telephone expenses.......................................... (760)
Cash paid for miscellaneous expenses................................... (580)
Net cash used by operating activities...................................... (6,640)
Cash flows from investing activities
Purchase of office equipment.................................................. (18,000)
Net cash used by investing activities ...................................... (18,000)
Cash flows from financing activities
Investments by owner ............................................................. 38,000
Withdrawals by owner ............................................................. (2,000)
Net cash provided by financing activities ................................ 36,000
Net increase in cash................................................................ $11,360
Cash balance, October 1......................................................... 0
Cash balance, October 31....................................................... $11,360
1
$7,000 Salaries Expense - $5,250 still owed = $1,750 paid to employees.
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any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Fundamental Accounting Principles, 21st Edition
18
Exercise 1-18 (10 minutes)
Return on assets = Net income / Average total assets
= $40,000 / [($200,000 + $300,000)/2]
= 16%
Interpretation: Swiss Group’s return on assets of 16% is markedly above the 10%
return of its competitors. Accordingly, its performance is assessed as superior to
its competitors.
Exercise 1-19 (10 minutes)
O 1. Cash paid for advertising O 5. Cash paid for rent
O 2. Cash paid for wages O 6. Cash paid on an account payable
F 3. Cash withdrawal by owner F 7. Cash investment by owner
I 4. Cash purchase of equipment O 8. Cash received from clients
Exercise 1-20B
(10 minutes)
a. Financing*
b. Investing
c. Investing
d. Operating
e. Financing
* Would also be listed as “investing” if resources contributed by owner were in the form of
nonfinancial resources.
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Solutions Manual, Chapter 1 19
Exercise 1-21 (20 minutes)
NINTENDO
Income Statement
For Year Ended March 31, 2011
(Japanese Yen in millions)
Net sales ...................................................................... ¥ 1,014,345
Expenses
Cost of sales.............................................................. ¥626,379
Selling, general and administrative expenses ........... 216,889
Other expenses ......................................................... 93,456
Total expenses .......................................................... 936,724
Net income...................................................................... ¥ 77,621
©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in
any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Fundamental Accounting Principles, 21st Edition
20
PROBLEM SET A
Problem 1-1A (40 minutes)
Part 1
Company A
(a) Equity on December 31, 2012:
Assets........................................................... $55,000
Liabilities....................................................... (24,500)
Equity ........................................................... $30,500
(b) Equity on December 31, 2013:
Equity, December 31, 2012.......................... $30,500
Plus investment by owner ............................ 6,000
Plus net income............................................ 8,500
Less withdrawals by owner .......................... (3,500)
Equity, December 31, 2013.......................... $41,500
(c) Liabilities on December 31, 2013:
Assets........................................................... $58,000
Equity ........................................................... (41,500)
Liabilities....................................................... $16,500
Part 2
Company B
(a) and (b)
Equity: 12/31/2012 12/31/2013
Assets.................................... $34,000 $40,000
Liabilities................................ (21,500) (26,500)
Equity .................................... $12,500 $13,500
(c) Net income for 2013:
Equity, December 31, 2012....................... $12,500
Plus investment by owner ......................... 1,400
Plus net income......................................... ?
Less withdrawals by owner ....................... (2,000)
Equity, December 31, 2013....................... $13,500
Therefore, net income must have been $ 1,600
Another Random Scribd Document
with Unrelated Content
[I-68] Frontenac to Red Wing, some 13 miles by
present channel, whence it is a couple of miles further
to the head of the island opp. Cannon r. camp. Pike
coasts the Minnesota shore till he finishes with the
lake at the mouth of Bullard's or Ida cr., a streamlet
that makes in at a town called after the chief Wakouta,
Wacouta, Wakuta, etc. Here he enters one of the
channels by which the Mississippi finds its way into the
lake, no doubt the middle one, then as now the main
one, which, however, soon joins the south one; the
north channel is narrower, crookeder, shoaler, and
connected with some expansions known as Upper and
Lower lakes and Goose bay. The town of Red Wing is
situated on the S. side of a sharp bend the river makes
in coming from the Cannon, on a plain under bluffs
that nearly encompass the town; one of these is
specially notable as the isolated elevation forming a
conspicuous landmark on the very brink of the river.
This is Barn bluff, or Barn mountain, so named by tr. of
F. La Grange; it is ¾ of a mile long and 345 feet above
low water mark; "upon the highest point of the
Grange. Major Long, who ascended it in 1817,
observed an artificial mound, whose elevation above
its base was about five feet," Keating, I. p. 296.
Nicollet made the altitude 322 feet, with commendable
caution; Owen gave 350 feet, almost correctly. This
word Grange is often found as Gange: thus Beltrami
has in text, p. 189, mountain of the Gange, and Gange
r.; latter also on map, and I suppose Ganges r. could
be found, even at this distance from India. About the
mouth of Cannon r., opp. Pike's camp, there was a
place called Remnichah; both Nicollet and Owen chart
Remnicha r. or cr. as a stream falling in close to the
mouth. While Remnicha or Hhemnicha was a name of
Red Wing's village, it also covered the whole tract from
Barn bluff to Cannon r. Mr. A. J. Hill informs me of "a
small ravine or coulée which ran through Red Wing's
village, and in 1854, when I lived there, was called the
Jordan. It only headed a few blocks back, and is now
doubtless a sewer or filled up." So Nicollet's Remnicha
r. is that now known as Hay cr., above which a certain
Spring cr. makes in on the same side. Present town of
Trenton, Pierce Co., Wis., is about a mile above camp.
[I-69] Discovery of the St. Croix r. is commonly
attributed to Accault's party, already mentioned as
consisting of himself, Auguelle, and Hennepin,
prisoners in the hands of the Sioux at the time. The
date is 1680; day in question. According to La Salle's
letter of Aug. 22d, 1682, written at Fort Frontenac, in
Margry's Relations, II. p. 245 seq., it was very shortly
after the 22d of April, 1680, when the Indians who
were carrying them off had come up the Mississippi to
8 leagues below the falls of St. Anthony, and then
determined to finish their journey by land to their
village at Mille Lacs. As the St. Croix is more than 24
m. below Minneapolis, this party must have passed its
mouth about the date said. The Memoir of Le Sieur
Daniel Greysolon Du Luth to the Marquis of Seignelay,
1685 (Archives of the Ministry of the Marine), states
that in June, 1680, he entered a river 8 leagues from
the end of Lake Superior, ascended it, made a half
league portage, and fell into "a very fine river," which
took him to the Mississippi r. This was the St. Croix,
which Du Luth thus certainly descended to its mouth
at that time. He heard of the captivity of his
countrymen with indignation and surprise, hired a
Sioux to show him where they were, and rescued
them; he says that he put them in his canoes and
carried them to Michelimakinak, whence, after
wintering there, they set out for the settlements Mar.
29th, 1681. It is quite possible that before the great
triangular duel which La Salle, Du Luth, and Hennepin
managed to arrange among themselves over the
operations of 1680, the St. Croix was seen by the
missionary Menard, who in 1661 may have reached
the Mississippi by way of the St. Croix or some other
way, and was soon after lost. Marquette is not in
question here, as he came by the Wisconsin to the
Mississippi and went down the latter. So with any other
person who reached the Mississippi prior to 1680.
Excepting the Menard matter, which is uncertain, the
case narrows to Accault's party and Du Luth, within
some weeks of each other, late spring and early
summer of 1680; the facts appear to be that the
former first passed the mouth of the St. Croix, and the
latter first descended this river. Hennepin first named
the river R. de Tombeau, Descr. Louis., 1683, map; this
is translated Tomb r., as, e. g., Shea's Hennepin, 1880,
p. 199, where we read: "Forty leagues above
[Chippewa r.] is a river full of rapids, by which, striking
northwest [read N. E.], you can proceed to Lake
Condé [L. Superior], as far as Nimissakouat [in Margry
Nemitsakouat, in the Nouv. Déc. Nissipikouet, being
the Bois Brûlé] river, which empties into that lake. This
first river is called Tomb river because the Issati
[Sioux] left there the body of one of their warriors,
killed by a rattlesnake, on whom, according to their
custom, I put a blanket." Some translate Grave r. On
Franquelin's map, 1688, the St. Croix is lettered R. de
la Magdelaine, though a certain Fort St. Croix appears
about its head; by whom it was first called Magdalene
r. I am not informed. Lahontan's map shows nothing
here; he was too full of his fabulous Long r. to concern
himself much with real rivers. Next come Lesueur and
his people, 1695; he had first reached the Mississippi
in 1683, and on this his second appearance (his third
being in 1700) they built the trading-house called Fort
Lesueur on Pelée isl., just below the mouth of the St.
Croix, as already noted. His editor, so far as this trip is
concerned, is the clever carpenter Penicaut, a sensible,
fair-and-square man. Just here comes in the question
of the first application of the name St. Croix. The river
was already so called and the name in use before
1700; thus, Nicolas Perrot's prise de possession, a
document dated at Fort St. Antoine, May 8, 1689,
mentions the Rivière-Sainte-Croix. The Carte du
Canada ou de la Nouvelle France, par Guillame de
L'Isle, Paris, 1703, traces the river and letters it "L. &
R. Ste. Croix," i. e., as some have translated it, Lake
and River Holy Cross; said lake being, of course, the
dilation of the same bottle-nosed river, which issues
from a contracted orifice, but is a mile or two wide
higher up. But whatever the theological proclivity to
suppose this name to have been given for the usual
instrument of the execution of Roman malefactors,
later put by the Emperor Constantine on his banner,
and afterward used for other purposes, it is certain
that the Christian crucifix is not directly implied in the
name. It is a personal designation, connoting one
Sainte Croix or Saint Croix, a trader named in La
Harpe's MSS. of Lesueur's third voyage as a
Frenchman who had been wrecked there; for we read:
"September 16 he [Lesueur] passed on the east a
large river called Sainte-Croix, because a Frenchman
of that name was shipwrecked at its mouth." Hennepin
names Sainte Croix as one of six men who deserted La
Salle. A letter written in June, 1684, by Du Luth to
Governor De la Barre (who succeeded Frontenac in
1682), states that the writer had met one Sieur de la
Croix and his two companions. This case resembles
those of La Crosse r. already noted, and St. Pierre r.,
noted beyond. It may be summed in the statement
that St. Croix r., St. Pierre r., and Lake Pepin, were all
three so named for persons, by Lesueur or his
companions, not earlier than 1683 and not later than
1695; best assignable date, 1689. The river has also
been called Hohang or Fish r. (cf. Sioux Hogan-wanke-
kin). The character of St. Croix's r. as a waterway to
the Great Lakes is elsewhere discussed. This stream
now forms the boundary between Wisconsin and
Minnesota from its mouth to beyond 46° N., where it
splits up into small streams in Burnett Co., Wis. Its
general course is not far from S.—it is due S. for many
miles before it falls into the Mississippi; which latter,
for a great distance above their confluence, has a
general bearing S. E. Immediately at the mouth of the
St. Croix, on the E., is Prescott, Pierce Co., Wis., the
site of which was once recommended by Long for a
military post; on the W. is Point Douglas, Washington
Co., Minn.; and across the Mississippi, a very little
higher up, is Hastings, seat of Dakota Co., Minn., at
the mouth of Vermilion r. The above-mentioned
dilation of the river into Lake St. Croix extends some
30 m. up from its mouth; and as far above this lake as
an Indian ordinarily paddled his canoe in a day was
the long-noted Sioux-Chippewa boundary, at a place
which became known as Standing Cedars. Thus the
river did duty in Indian politics before it set bounds to
our Minnesota and Wisconsin. This lake was often
called Lower St. Croix l., in distinction from the sizable
body of water at the head of the river known as Upper
St. Croix l. For the route thence by Burnt r. to Lake
Superior, see a note beyond.
[I-70] Especially as it leaves us in the lurch for mileage
of the 19th. But we can easily overhaul him before he
gets to St. Paul, which is only 30 river-miles from
Prescott (mouth of St. Croix r.). He did not go far
above this river; for he makes it 26½ + 8 = 34½ m.
to the Sioux village, which latter was close to the
present city limits of St. Paul. If we must set a camp
for him, it may be assigned to Hastings, Dakota Co.,
Minn., 2½ m. above Prescott, Pierce Co., Wis., and
18½ m. below Newport, Washington Co., Minn., in the
vicinity of which he will camp to-morrow. "Tattoo," at
which the blunderbuss was fired, is not a place, as the
context and capitalization might suggest, but a certain
military call which is habitually sounded in garrisons
and camps in the evening before taps. It marks the
hour when the soldiers are supposed to retire to their
quarters for their devotions before the lights are put
out at taps, and when the officers settle down in
earnest for the night's poker. In approaching the St.
Croix from his camp opposite Cannon r., Pike has bluffs
off his right nearly all the way, and the town of
Diamond Bluff, Pierce Co., Wis., is at the point where
they first reach to the river, a mile and a half above
the mouth of Trimbelle r., right, and 11 m. below
Prescott. On the left the bluffs are off the river all the
way, and for most of this distance Vermilion slough,
running under the bluffs, cuts off an island 11 m. long
and at its widest near 3 m. broad. The lower outlet of
the slough is below Trimbelle r.; the middle opening is
only 3 m. below Prescott; the upper one is at Hastings.
The bottom-land of the principal island has several
bodies of water, one of them called Sturgeon l.,
discharging separately from the main slough; and is
traversed lengthwise by a sand-bank 6 m. long, which
may be called Lesueur's Terrace. For this Prairie or
Bald isl. is no doubt that formerly known as Isle Pelée,
on which was built Fort Lesueur, 1695. The middle
opening of Vermilion slough is in common with a lower
outlet of Vermilion r. This is Rapid r. of Long, and
Rivière Jaune of the French; "R. Jaune" appears on
Franquelin's map, 1688. The upper discharge of this
river is at Hastings, and thus above the mouth of the
St. Croix; Lake Isabel is a small sheet between the
river and the town. The Minnesota county line
between Goodhue and Dakota strikes the Mississippi
just 1¼ m. below the lower mouth of Vermilion r. At
the mouth of the St. Croix the Mississippi ceases or
rather begins to separate Wisconsin from Minnesota;
so that henceforth Pike proceeds in the latter State.
[I-71] Hastings to Newport, 18½ m. by the channel;
camp a mile and a half beyond this, vicinity of present
Red Rock, Washington Co., at the point on the small
strip of prairie where the Sioux had their celebrated
red medicine-stone; this was the "large painted stone"
Pike observed. It gave name to Red Rock, having
meanwhile become a historical object. We read in
Long, I. p. 287: "a stone which is held in high
veneration by the Indians on account of the red
pigment with which it is bedawbed, it is generally
called the painted stone.... It is a fragment of syenite,
which is about four and a half feet in diameter.... The
Indians frequently offer presents to the Great Spirit
near this stone," etc. The party found near the stone
an eagle's feather, roots of Psoralea esculenta, and
willow sticks painted red; they secured a fragment of
the idol for their mineralogical collection. At the time of
this visit (1823) there was an Indian burying-ground a
short distance above—in sight from the spot—if that
place can be called a burying-ground where the bodies
are not buried in the ground but scaffolded in the air;
a mode of disposition of the dead which might be
called hypsitaphy, in distinction from bathytaphy or
ordinary underground interment. See Pike's remarks
on Sioux burial on the 21st. To reach the sacred spot,
hallowed by association with the deepest religious
emotions of the untutored aboriginal mind, Pike left
Hastings, where the river was bridged by the C., M.
and St. P. R. R. in 1871 (Act of Minn. Legisl., Feb. 7th,
1867), and soon passed the site of Nininger, Dakota
Co., a small town built at the lower point of a steep
bluff which fronts the river's edge on the S., at the
mouth of the rivulet which serves as the upper
discharge of Lake Rebecca or King l.—in fact the whole
bottom on his left is an island 2¾ m. long, extending
from Hastings to Nininger, being cut off by the slough
of which King l. is a dilation. On the right, in
Washington Co., bluffs front the river for a mile or
more, to the lower opening of Boulanger slough, which
cuts off an island 2½ m. long. The immediate frontage
of the Nininger bluffs on the river is less than a mile,
for they recede at the lower opening of Nininger
slough. The river thus winds from side to side of its
bed, with alternation of bluffs and bottom on each
side. Above Nininger slough the river makes a great
loop to the left; the whole irregular curve is subtended
on the right by Grey Cloud slough, about 4 m. long
direct, and longer by its meanders, thus cutting off
Grey Cloud isl., of the same length, and over 2 m.
wide in some places; town site Grey Cloud,
Washington Co., on the river bank on this island, which
also presents at its northern end a limestone rock, 50
to 75 feet above low-water mark, and a mile or more
long; this is probably the Medicine Wood of Forsyth,
1819. Near the middle of the loop, on the other side, is
the nominis umbra site of Pine Bend, Dakota Co.,
where the river runs under the hills. This loop was
formerly called Détour de Pin or des Pins, whence its
modern names Pine bend and Pine turn. The hills
border the river pretty closely for 5 m. further, to
Merrimac, opposite which is an island of the same
name; within 1½ m. of this on the right hand,
opposite an island of its own name, is Newport,
Washington Co.
[I-72] Newport to St. Paul—to a steamboat ldg. about
the foot of Wabasha or Robert st.—is 8½ m. by the
channel, and considerably more than halfway up to
Pike's camp on the island at the mouth of St. Peter's or
the Minnesota r. Thus, though Pike calls to-day's
voyage "24 miles," it is nearer 14. One who then
swept around the bold bend of the river at St. Paul
saw a germ of that great metropolis in the humble
Sioux village, though only prescience could have
divined what time would make of the site above it. A
later account than Pike's is given in Keating's Long's
Exp. of 1823, pub. 1824, I. p. 289: "Passed an Indian
village consisting of ten or twelve huts, situated at a
handsome turn on the river, about 10 miles below the
mouth of the St. Peter; the village is generally known
by the name of the Petit Corbeau, or Little Raven,
which was the appellation of the father and
grandfather of the present chief. He is called
Chetanwakoamene (the good sparrow-hunter). The
Indians designate this band by the name of Kapoja,
which implies that they are deemed lighter and more
active than the rest of the nation." This was a band of
Mdewakantonwan Sioux (the Minowa Kantong of Pike),
for which, as well as for the celebrated chief himself,
see notes beyond. The term which Keating renders
Kapoja is now Kaposia, as a designation of the locality
of South Park, a place on the west bank of the river;
but the old Sioux village was on the east bank, below
Frenchman's bar, in the low ground formerly called by
the French Grand Marais, rendered by Beltrami Great
March (for Great Marsh, II. p. 197), and now rejoicing
in the epithet of Pig's Eye marsh or lake. Pig's Eye was
the soubriquet of one Peter Parrant, a whisky-seller
who squatted on the bottom in 1838, below Carver's
Cave in the Dayton bluff. The whole region about the
mouth of St. Peter's r. had been a Sioux focus and
stamping-ground for generations before any of the
localities thereabouts received names from us. The
curious origin of the name St. Paul for the present
capital was in this wise: The limits of the military
reservation about Fort Snelling were authoritatively
fixed in 1839. The whisky-traders, loafers, and
squatters about the place became so troublesome that
the U. S. Marshal of Wisconsin was directed to remove
all such intruders, who were given till next spring to
decamp; and on May 6th, 1840, the troops were called
out to complete the eviction by the destruction of
cabins. In the words of E. D. Neill, Minn. Hist. Soc., II.
Part 2, 1864, 2d ed. 1881, p. 142: "The squatters then
retreated to the nearest point below the military
reserve, and there they became the inglorious
founders of a hamlet, which was shortly graced with
the small Roman Catholic chapel of St. Paul, the name
of which is retained by the thrifty capital of Minnesota,
which has emerged from the groggeries of 'certain
lewd fellows of the baser sort.'" The chapel above
mentioned was built by Rev. Lucian Galtier, on what is
now Catholic block; it fronted on Bench street. It was
dedicated Nov. 1st, 1841. The first marriage bans were
those of one Vital Guerin, described as "a resident of
St. Paul;" and thus the priest named the place as well
as the house, although it was also called for a time St.
Paul Landing, because some stores had been put up
close by, which caused steamboats to stop there. In
1848, when Minnesota acquired Territorial
organization, and the capital was fixed at St. Paul, no
such place could be found on ordinary maps; it was
some obscure settlement, supposed to be somewhere
about the mouth of St. Peter's r., or in the vicinity of
St. Anthony's falls, perhaps at a place known as White
Rock, or Iminijaska, where some bluffs were more
easily discernible than any village. Even down to 40
years ago, or a little before 1858, when Minnesota
acquired statehood, St. Paul had only replaced tepees
with a sprinkling of log cabins; and people scrambled
up the bluff by digging their toes into the ground. The
site of the city is one which would hardly have been
anticipated as such; nor would the original features of
the locality be easily recognized now after all the
grading and terracing that has been done to convert
the stubborn hills and intractable hollows into a
beautiful city of over 190,000 inhabitants. But all this
was to be, and is well worth all that it cost. Among the
natural features which should be noted in this
connection, especially as they have given rise to
conflicting historical statements, are Carver's Great
Cave in Dayton's bluff, and Nicollet's New (Fountain)
Cave, halfway thence to Fort Snelling; but for these, as
well as for a third cave close to Carver's, see a note
beyond, at date of Apr. 12th, 1806, when Pike's text
brings the matter up.
[I-73] Jean Baptiste Faribault, b. Berthier, Lower
Canada, 1774, d. Faribault, Minn., Aug. 20th, 1860,
being at the time the oldest white resident of the
present State. Jean Baptiste was the youngest one of
10 children of Bartholomew (who was b. in Paris and
came to Canada in 1754); he was in business in
Quebec 1790-97, at the latter date entered the employ
of J. J. Astor as an agent of the N. W. Co., and was
engaged in the Indian trade at various points in the
Mississippi region for about 50 years, for the most part
on his own account. One of the posts he established
was at the mouth of the Minnesota r., where Pike
found him. In 1814 he married a half-breed daughter
of Major Hause (then Superintendent of Indian
Affairs), by whom he had eight children. His Indian
name was Chahpahsintay, meaning Beaver Tail. His
eldest son, Alexander, founded the present town of
Faribault, Minn. Mr. J. B. Faribault "espoused the cause
of the U. S. during the war of 1812, and lost many
thousand dollars thereby, as well as narrowly escaping
with his life on several occasions. He labored all his life
to benefit the red man, teach him agriculture and the
arts of industry, and protect his interests. He had an
unbounded influence over them; his advice was never
disregarded. He was prominent at all treaties, and
rendered the U. S. many valuable services," says J. F.
Williams, Minn. Hist. Coll., I. 2d ed. 1872, p. 377: see
also ibid., p. 468. An extended memoir of Faribault, by
General H. H. Sibley, occupies pp. 168-79 of III. of the
Minn. Hist. Coll., 1874.
[I-74] The history of the discovery of St. Peter's r., off
the mouth of which Pike is now camped, is involved in
some obscurity, which modern research has not wholly
cleared up, though the main facts have probably been
certified. (1) It has been conceded since Carver's time
that Hennepin missed the river. Discovery has not
been traced back of Lesueur's time. Lesueur was first
on the Mississippi hereabouts in 1683; next in 1695,
when he built on Pelée isl., just below the St. Croix;
and again in 1700; both these rivers are noted in the
treatise of Nicolas Perrot, and before 1700 the river of
St. Pierre had been so named. (2) Charlevoix's
account, Hist. N. Fr., Paris, 1744, IV. pp. 165, 166, is in
substance: In 1700 Lesueur, sent by D'Iberville to
establish himself in the Sioux country and take
possession of a copper-mine que le Sueur y avait
découverte, had already discovered there, some time
before; ascended St. Peter 40 leagues to Rivière Verte
(now Blue Earth r.) which comes in on the left hand as
you go up; ascended this Green r. 1 league; built a fort
and wintered there, 1700-1; in April, "1702," for which
read 1701, went up Green r. ¾ league to his mine and
in 22 days got out over 30,000 lbs. of ore, of which
4,000 selected lbs. were sent to France; there was a
mountain of this mineral 10 leagues long, etc. (3) The
Amer. Philos. Society's copy of the MS. of Bénard de la
Harpe is carefully digested by Keating in Long's Exp., I.
pp. 317-322. This MS. is entitled: "Journal historique
concernant l'établissement des Français à la
Louisianne, tiré des mémoires de Messrs. d'Iberville et
de Bienville, etc., par M. Bénard de la Harpe." The
original of this copy was in the hands of Dr. Sibley,
who certifies to the correctness of the copy in a note
annexed, dated Natchitoches, Oct. 29th, 1805. Some
of the contents of this MS. are: (a) Lesueur and
d'Iberville, with 30 hands, reached the mouth of the
Mississippi Dec., 1699. Lesueur was sent there by M.
l'Huillier, fermier général, under orders to establish
himself at a place near the sources of the Mississippi,
where he had previously discovered a green ore, i. e.,
in 1695. The substance of the 1695 discovery is:
Lesueur built a fort on an island (Isle Pelée, now
Prairie isl.) in the Mississippi over 200 m. above the
Illinois, by order of Count Frontenac; and the same
year he went to Montreal with the Chippewa chief
Chingouabé and the Sioux chief Tioscaté, the latter the
first of his nation that ever was in Canada, and
received very kindly by the authorities in view of what
they hoped to make out of his country. With this Sioux
chief Lesueur had intended to reascend the Mississippi
in 1696; but the former died at Montreal after 33 days'
illness. Lesueur, thus released from an obligation to go
back with the chief to the country where he had
discovered the ore, determined to go to France to ask
leave to open mines; this voyage he made, and had
his permit in 1697. June, 1697, he embarked at La
Rochelle for Canada; was captured by the British on
the Newfoundland banks and carried to Portsmouth;
after peace, returned to Paris for a new commission,
which was issued to him in 1698; went to Canada with
this; various obstacles threw him back to Europe; and
meanwhile part of the men whom he had left in
charge in 1695 abandoned their posts and proceeded
to Montreal. Thus operations on the mines were
suspended from 1695 to 1700, for Lesueur and
d'Iberville, with their 30 workmen, as we have seen,
only reached the mouth of the Mississippi in Dec.,
1699. (b) The MS. we are following states, under date
of Feb. 10th, 1702, that Lesueur was that day come to
the mouth of the Mississippi with 2000 quintaux of
blue and green earth. This he certainly had got on his
tour of Dec., 1699-Feb., 1702, from and back to the
mouth of the Mississippi, and he had got it from the
mine he opened and worked on Rivière Verte or Blue
Earth r., the principal branch of St. Peter's. The MS.
contains a narrative of this tour from July 12th to Dec.
13th, 1700. It appears that Lesueur moved as follows:
July 13th, mouth of the Missouri; Sept. 1st, mouth of
the Wisconsin; Sept. 14th, mouth of the Chippewa (on
one of whose branches he had found a 60-lb. mass of
copper during his previous journey); same day, Lake
Pepin, so designated in the MS.; 16th, passed La Croix
r., so called from a Frenchman wrecked there; 19th,
entered St. Peter's r.; Oct. 1st had ascended this for
44¼ leagues, and then entered Blue r., so called for
the color of the earth on its banks; started an
establishment at or more probably near the mouth of
Blue r., at what the MS. gives as lat. 44° 13´ N.; Oct.
14th, finished the works, which were named Fort
L'Huillier; Oct. 26th, went to the mine with three
canoes, which he loaded with colored earth taken from
mountains near which were mines of copper, samples
of which L'Huillier had assayed at Paris in 1696.
Lesueur wintered there, 1700-1, and, as we have
seen, was back to the mouth of the Mississippi Feb.
10th, 1702. (c) From these historical data Keating in
Long, 1823, I. p. 320, infers that St. Peter's and the
Blue (Blue Earth) rivers were those streams which
Lesueur had ascended in 1695, which date is
consequently assigned to the discovery, without
reference back to 1683. This inference is made "from
the circumstance that they are mentioned as well
known, and not as recently discovered; and more
especially from the observation of la Harpe, that the
eastern Sioux having complained of the situation of
the fort [L'Huillier], which they would have wished to
see at the confluence of the St. Peter and Mississippi,
M. le Sueur endeavoured to reconcile them to it. 'He
had foreseen,' says la Harpe, 'that an establishment on
the Blue river would not be agreeable to the eastern
Sioux, who are the rulers of all the other Sioux,
because they were the first with whom the French
traded, and whom they provided with guns;
nevertheless, as this undertaking had not been
commenced with the sole view of trading for beavers,
but in order to become thoroughly acquainted with the
quality of the various mines which he had previously
discovered there [italics Keating's], he replied to the
natives that he was sorry he had not been made
sooner acquainted with their wishes, &c., but that the
advanced state of the season prevented his returning
to the mouth of the river.' No mention is made in this
narrative of the stream being obstructed with ice, a
circumstance which, had it really occurred, would, we
think, have been recorded by de la Harpe, who
appears to have been a careful and a curious observer,
and who undoubtedly saw le Sueur's original
narrative." (4) On the foregoing data Nicollet, Rep.
1843, p. 18, has some judicious remarks in fixing
Lesueur's locality with precision: "On the left bank of
the Mankato [Green, Blue, or Blue Earth r.], six miles
from its mouth, in a rocky bluff composed of
sandstone and limestone, are found cavities in which
the famed blue or green earth, used by the Sioux as
their principal pigment, is obtained. This material is
nearly exhausted, and it is not likely that this is the
spot where a Mr. Lesueur (who is mentioned in the
Narrative of Major Long's Second Expedition, as also
by Mr. Featherstonhaugh) could, in his third voyage,
during the year 1700, have collected his 4000 pounds
of copper earth sent by him to France. I have reason
to believe that Lesueur's location is on the river to
which I have affixed his name, and which empties into
the Mankato three-quarters of a league above Fort
L'Huillier, built by him and where he spent a winter.
This location corresponds precisely with that given by
Charlevoix, whilst it is totally inapplicable to the
former. Here the blue earth is abundant in the steep
and elevated hills at the mouth of this river, which hills
form a broken country on the right side of the
Mankato. Mr. [J. C.] Fremont and myself have verified
this fact: he, during his visit to Lesueur river; and I,
upon the locality designated by Mr. Featherstonhaugh,
where the Ndakotahs formerly assembled in great
numbers to collect it, but to which they now seldom
resort, as it is comparatively scarce—at least so I was
informed by Sleepy-eye, the chief of the Sissitons, who
accompanied me during this excursion." (5)
Featherstonhaugh's remarks, Canoe Voyage, etc., I. p.
280 and p. 304, seem to me less judicious than likely
to make the judicious grieve; in fine, they are
singularly obtuse to have come from so British a man
and so clever a story-teller. He heads a page in caps,
"The Copper-mine, a Fable;" he has in text, "finding the
copper-mine to be a fable"; again: "that either M. le
Sueur's green cupreous earth had not corresponded to
the expectations he had raised, or that the whole
account of it was to be classed with Baron Lahontan's"
fables, etc. This sort of talk would befog the whole
subject, were it not obvious that it has no bearing
whatever upon the historico-geographical case we are
discussing. The question is where Lesueur went, and
when he got there—not at all what he found there. It
is obtuse, I say, because unintentionally misleading,
for F'gh to say that, when he reached the bluff whence
the pigment had been taken, "Le Sueur's story lost all
credit with me, for I instantly saw that it was nothing
but a continuation of the seam which divided the
sandstone from the limestone ... containing a silicate
of iron of a blueish-green color." In the first place, F'gh
was not at exactly the right spot, which Nicollet has
pointed out. Secondly, though Lesueur should have
been mistaken or mendacious about any copper-mine
being in that region—though he should not have
collected 30,000 lbs. of ore in 22 days, or even a
gunny-sack full of anything in a year—though the
mountains should shrink to bluffs, and the whole
commercial features of the case turn into the
physiognomy of the wild-cat—that would not affect the
historical and geographical facts, viz.: Lesueur
ascended the St. Peter's to the Mankato, and this as
far at least as its first branch, thus exploring both
these rivers in 1700. Item, he had been to if not also
up the river of St. Pierre in 1695; and it had been
known since his first voyage in 1683. (6) As to the
name Rivière St. Pierre, or de St. Pierre, which we
have translated St. Peter, or St. Peter's r., the former
obscurity of its origin has, I think, been almost entirely
cleared up. Keating's Long, 1824, I. p. 322, has: "We
have sought in vain for the origin of the name; we can
find no notice of it; it appears to us at present not
unlikely that the name may have been given by le
Sueur in 1795 [slip for 1695], in honor of M. de St.
Pierre Repantigni, to whom La Hontan incidentally
alludes (I. p. 136) as being in Canada in 1789 [i. e.,
1689]. This person may have accompanied le Sueur on
his expedition." Keating does not cite in this
connection the remark of Carver, ed. 1796, p. 35:
"Here [at Lake Pepin] I discovered the ruins of a
French factory, where it is said Captain St. Pierre
resided, and carried on a very great trade with the
Naudowessies [Sioux], before the reduction of
Canada." This person was Jacques Le Gardeur St.
Pierre, who in 1737 commanded the fort on Lake
Pepin (Fort Beauharnois). One Fort St. Pierre was built
at Rainy l. late in 1731; J. Le G. St. Pierre was there in
1751: for extended notice of him, see Neill, Macalester
Coll. Cont., No. 4, 1890, pp. 136-40. His father was
Captain Paul St. Pierre, who was sent to the French
post (Maison Françoise) at La Pointe (Chaquamegon
bay) in 1718. Nicollet, Rep. 1843, p. 68, cites Carver,
and states: "I have no hesitation in assigning its [the
name's] origin to a Canadian by the name of De St.
Pierre, who resided for a long time thereabouts." The
name appears for the first time in Perrot's report, of
the date 1689, which is also the most probable date of
naming the St. Croix r. and Lake Pepin. The only
question left is, whether the river was not named to
compliment Pierre Lesueur himself. Whoever the St.
Pierre whose name the river bears may prove to be,
the name is a personal one, which we should not have
translated into English St. Peter; for it certainly has
nothing to do with the legendary saint so styled,
whose career is connected with the crowing of cocks
three times more than with the course of any river.
Had the stream been named by some priest for such a
sadly overworked patron as the apocryphal first Bishop
of Rome, we should have heard all about it in the
Jesuit Relations or elsewhere. (7) The suggestion that
the name St. Pierre is a perversion of sans pierres
("without stones"), may be dismissed as too good to
be true; for it is a settled principle of sound philology
that the easiest etymologies are the most likely to
have been invented to fit the case, ex post-facto. (8)
As to native names, Nicollet says, l. c.: "The name
which the Sioux give to the St. Peter's river is Mini-
sotah; and to St. Peter's, as a station [Mendota],
Mdote-mini-sotah. The adjective sotah is of different
translation. The Canadians translate it by a pretty
equivalent French word, brouillé—perhaps most
properly rendered into English by blear; as, for
instance, mini sotah, blear water, or the entrance of
blear water. I have entered into this explanation,
because the word sotah really means neither clear nor
turbid, as some authors have asserted; its true
meaning being readily found in the Sioux expression
ishta-sotah, blear-eyed.... The Chippeways are more
accurate; by them, the St. Peter's river [is called]
Ashkibogi-sibi, the Green Leaf river." It occurs to me
that the distinction Nicollet draws would correspond to
translucent, as distinguished on the one hand from
colorless or transparent water, and on the other from
opaque or turbid water. I may also refer to the old
medical term, gutta serena, for forming cataract of the
eye, when clear vision is obscured by a degree of
opacity that does not entirely exclude light. As applied
to water, Sioux sotah may be about equivalent to
Greek γλαυκός, Latin glaucus, variously rendered
"gray," "bluish-green," etc., and Nicollet's "blear-eyed"
be equivalent to what was called glaucoma
(γλαύκωμα). Notice what Pike says above of the color
of the water; but it must be added that, when he
speaks of the Mississippi as "remarkably red," we must
understand only a reddish-yellow hue of its shoal
portions, imparted by its sands; and by "black as ink,"
only the darker color of deeper places where the sands
do not show through. The name Mini-sota has a
number of variants: for example, Carver, who wintered
on it Nov., 1766-Apr., 1767, has "the River St. Pierre,
called by the natives the Waddapawmenesotor"; with
which compare Watapan Menesota of Long,
Watpàmenisothé of Beltrami, and the title of
Featherstonhaugh's diverting book, "A Canoe Voyage
up the Minnay Sotor," etc. It has become fixed of late
years, since an Act of Congress, approved June 19th,
1852 (Stat. at Large, X. p. 147), decreed that the
noble river should bear the name of the State through
which it flows. (9) The Minnesota r. appears on various
old maps of Louisiana (not on Hennepin's, 1683).
Franquelin's, 1688, traces it without any name, but
letters it with the name of the Indians, "Les
Mascoutens Nadouescioux," i. e., Sioux of the Prairie,
Gens du Large of the French, collectively, as
distinguished from Gens du Lac. De L'Isle's map, 1703,
has "R. St. Pierre."
[II-1] The village which Pike visited is marked on his
map on the west, upper, or left bank of the Minnesota
r., which here runs little E. of N. into the Mississippi.
The hill on the point whence the Sioux saluted him so
savagely was the scene of many a more warlike
demonstration in after-years; for here was built Fort
St. Anthony, later known as Fort Snelling, one of the
most important and permanent military establishments
in the United States, and for nearly half a century the
most notable place on the Mississippi above Prairie du
Chien. It was erected on the land which Pike secured
by the transaction his text is about to describe, and
which extended thence up the river to include the falls
of St. Anthony, and thus the site of the present great
city of Minneapolis, with St. Paul the twin metropolis of
the Northwest. The location of Fort Snelling is in
Nicollet's opinion "the finest site on the Mississippi
river"; and I should be the last to dissent from this
judgment, after my enjoyable visit to the fort in 1873,
at the invitation of General Alexander. The bluff
headland is about 105 feet above the water; the two
rivers separated by this rocky point are respectively
over 300 and nearly 600 feet broad. The height of Pilot
Knob, across the Minnesota r., is about 250 feet. The
plateau on the point of which the fort is situated
stretches indefinitely S. W.; 8 m. direct N. W. are
Minneapolis and the falls. The Mississippi receives the
Minnesota at the point of greatest convexity of a deep
bend to the S., duplicating that bend to the N. on
which St. Paul is situated, the two together forming
quite a figure of s. Nothing came of Pike's
recommendation of this site for a military post till a
report to the same effect was made by Major Long,
after his expedition of 1817, during which he reached
the place at 2 p. m., Wednesday, July 16th. On Feb.
10th, 1819, the Secretary of War, John C. Calhoun,
ordered the 5th infantry to proceed to the Mississippi
and establish regimental headquarters at the mouth of
St. Peter's r. A detachment of troops, mustering 98
rank and file, under Colonel Henry Leavenworth, who
had become lieutenant-colonel of that regiment Feb.
10th, 1818, was first cantoned at New Hope, near
Mendota, Sept. 24th, 1819, and preparations were
begun at once for a permanent structure. The winter
of 1819-20 was disastrous from scurvy. On May 5th,
1820, camp was shifted to a place near a spring,
above the graveyard, and was thereupon named Camp
Coldwater. In the spring of 1820 Jean Baptiste
Faribault located himself in the vicinity; Governor
Lewis Cass came from his exploration of the upper
Mississippi during the summer, and Lawrence
Taliaferro's Indian agency was established as Camp St.
Peter's. As usual, the colonel commanding and the
Indian agent clashed, notably in the matters of medals
and whisky. In August, 1820, Colonel Josiah Snelling,
who had become colonel of the regiment June 1st,
1819, arrived and relieved Colonel Leavenworth of the
command. He determined to build on the point
originally selected by Pike. The corner-stone of Fort St.
Anthony is supposed to have been laid Sept. 10th,
1820; and the building was so far forward in the
autumn of 1822 that the troops moved in, though it
was not completed. It is traditional that a tree on
which Pike had cut his name was ordered to be spared
in the process of construction; but, if so, it soon
disappeared. On May 10th, 1823, the first steamboat,
the Virginia, reached the fort. It brought among other
notables the Chevalier Beltrami. On July 3d, 1823,
Major Long arrived, en route to his exploration of St.
Peter's r. In 1824 General Winfield Scott visited the fort
on a tour of inspection. It does not appear to have
struck anybody before that the name of a professional
saint of the Prince of Peace was absurdly inapplicable
to any military establishment. General Scott very
sensibly reported that the name was "foreign to all our
associations," besides being "geographically incorrect,"
and recommended the post to be named Fort Snelling,
in well-deserved compliment to the distinguished
officer who had built it. The story of Fort Snelling,
from its inception to the end of all Indian collisions, is
an integral and very prominent part of the history of
Minnesota; it is an honorable record, of which citizens
and soldiery may be equally proud—one replete with
stirring scenes and thrilling episodes, which in the
lapse of years tradition has delighted to set in all the
glamour of romance. But the most sober historians
have found a wealth of material in the stern actualities
of Fort Snelling. The facts in the case need no
embellishment. The following are some of the many
references that could be given to the early history of
Fort Snelling: Occurrences in and around Fort Snelling
from 1819 to 1840, E. D. Neill, M. H. C., II. Part 2,
1864; 2d ed. 1881, pp. 102-42. Early Days at Fort
Snelling, Anon., M. H. C., I. Part 5, 1856; 2d ed. 1872,
pp. 420-438 (many inaccuracies in dates, etc.).
Running the Gauntlet, ibid., pp. 439-56, Anon.,
believed to be by W. J. Snelling, son of Josiah Snelling.
Reminiscences of Mrs. Ann Adams, 1821-29, M. H. C.,
VI. Part 2, 1891, pp. 93-112. Autobiography of Maj.
Lawrence Taliaferro, written in 1864, M. H. C., VI. Part
2, pp. 189-255 (specially interesting, as he was Indian
agent, 1819-40).
[II-2] Pike's speech at this memorable conference, the
treaty itself, and a long letter which Pike addressed to
Wilkinson in this connection on the 23d, 24th, and
25th, formed Docs. Nos. 4 and 5 of the App. to Part 1
of the orig. ed. These are given in full beyond, Chap.
V. Arts. 4, 5, and 6, where the text of the treaty is
subjected to a searching criticism in the light of
subsequent events. Here we may conveniently note
the names of the chiefs concerned in the transaction.
The best article I have seen upon this subject is that
by Dr. Thomas Foster of Duluth, in the St. Paul Daily
Democrat of May 4th, 1854, as cited by J. Fletcher
Williams in Minn. Hist. Coll., I. 2d ed. 1872, p. 379;
this, however, requires some additions and corrections.
1. Little Crow and Little Raven are English equivalents
of Petit Corbeau, which latter is a French version of
the name of the hereditary chiefs of the Kapoja band,
borne by successive individuals through several
generations. Pike's Little Crow is said by Long to have
been son of Little Crow, who was himself son of Little
Crow; and Foster identifies Pike's Little Crow "as the
grandfather of the present chief, Little Crow," i. e., of
one of this name who was chief in 1854, adding neatly
that "he was the Great Crow of all," i. e., the most
celebrated of all those who bore the name. This
reference would seem to cover five generations, from
Pike's Little Crow backward to his grandfather and
forward to his grandson. Riggs renders Pike's Little
Crow's name Chatanwakoowamani, Who-walks-
pursuing-a-hawk; says that his son's name was
Wamdetanka, or Big Eagle, who flourished in the
thirties; and adds that the dynasty became extinct
with Taoyatidoota (or Towaiotadootah), who was the
Little Crow of the Sioux outbreak of 1862. He was a
very black crow indeed, this last of the Corvidæ, and
was killed by a Mr. Lamson in 1863. Confining
attention now to the one who seems by this reckoning
to have been Little Crow III. of the series I.-V., we find
him tabulated by Pike as Chatewaconamini. We have
already found him cited by Long as
Chetanwakoamene, rendered Good Sparrow Hunter.
Beltrami, II. p. 191, presents Chatewaconamani, or the
Little Raven, as the chief in 1823. Featherstonhaugh
has a chief he calls Tchaypehamonee, or Little Crow,
living in 1835. Rev. Dr. Neill has in one place
Chatonwahtooamany, Petit Corbeau. Dr. Foster gives
the Dakota name as Tchahtanwahkoowahmane, or the
Hawk that Chases Walking. Pike's Little Crow lived
many years after he "touched the quill" (signed his x
mark) to the cession, and was in Washington in 1824.
Schoolcraft, who held a council with the Wahpeton
Sioux at Fort Snelling, July 25th, 1832, says, Narr.,
etc., 1834, p. 146: "The aged chief Petite [sic] Corbeau
uttered their reply. I recognized in this chief one of the
signers of the grant of land made at this place 26
years ago, when the site of the fort was first visited by
the late General Pike." The death of this good man (in
1834?) occurred from a mortal wound he accidentally
inflicted upon himself in drawing his gun from a
wagon, at his village of Kaposia. The circumstances
are narrated with interesting particulars by General H.
H. Sibley, Minn. Hist. Coll., III. 1874, pp. 251-54.
2. The chief here and consistently throughout Pike's
book of 1810 called Fils de Pinchow appears in the
1807 text as Fils de Penichon, Penechon, or Pinechon;
but nowhere are we told of whom this eminent
individual was the son. The name seems to have been
one to conjure with; and our curiosity is excited to
discover Pinchow I., who was such a personage that
Pike's Fils de Pinchow, or Pinchow II., needed no other
title to glory. On looking up this subject, I find, first,
that "Pinchow," as rendered in the above text, and the
three forms given in the 1807 print, are four variants
of a word which is also written Pinichon, Pinchon,
Penition, Pinneshaw, etc., in French or English; and
that these are corruptions of a Dakota word. Thus
Beltrami, II. p. 207, introduces us to one
Tacokoquipesceni, or Panisciowa, as being in 1823
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  • 5. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 1 Managing Operations Across the Supply Chain 2nd Full chapter download at: https://testbankbell.com/product/solution-manual-for- managing-operations-across-the-supply-chain-2nd-edition-by-swink/ Chapter 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology reduces the time, effort, and cost of recordkeeping. There is still a demand for people who can design accounting systems, supervise their operation, analyze complex transactions, and interpret reports. Demand also exists for people who can effectively use computers to prepare and analyze accounting reports. Technology will never substitute for qualified people with abilities to prepare, use, analyze, and interpret accounting information. 3. External users and their uses of accounting information include: (a) lenders, to measure the risk and return of loans; (b) shareholders, to assess whether to buy, sell, or hold their shares; (c) directors, to oversee their interests in the organization; (d) employees and labor unions, to judge the fairness of wages and assess future employment opportunities; and (e) regulators, to determine whether the organization is complying with regulations. Other users are voters, legislators, government officials, contributors to nonprofits, suppliers and customers. 4. Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned? Are expenses reasonable for the level of sales? Are customers’ accounts being promptly collected? 5. Service businesses include: Standard and Poor’s, Dun & Bradstreet, Merrill Lynch, Southwest Airlines, CitiCorp, Humana, Charles Schwab, and Prudential. Businesses offering products include Nike, Reebok, Gap, Apple Computer, Ford Motor Co., Philip Morris, Coca-Cola, Best Buy, and Circuit City. 6. The internal role of accounting is to serve the organization’s internal operating functions. It does this by providing useful information for internal users in completing their tasks more effectively and efficiently. By providing this information, accounting helps the organization reach its overall goals. 7. Accounting professionals offer many services including auditing, management advice, tax planning, business valuation, and money management. 8. Marketing managers are likely interested in information such as sales volume, advertising costs, promotion costs, salaries of sales personnel, and sales commissions.
  • 6. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 2 9. Accounting is described as a service activity because it serves decision makers by providing information to help them make better business decisions. 10. Some accounting-related professions include consultant, financial analyst, underwriter, financial planner, appraiser, FBI investigator, market researcher, and system designer. 11. Ethics rules require that auditors avoid auditing clients in which they have a direct investment, or if the auditor’s fee is dependent on the figures in the client’s reports. This will help prevent others from doubting the quality of the auditor’s report. 12. In addition to preparing tax returns, tax accountants help companies and individuals plan future transactions to minimize the amount of tax to be paid. They are also actively involved in estate planning and in helping set up organizations. Some tax accountants work for regulatory agencies such as the IRS or the various state departments of revenue. These tax accountants help to enforce tax laws. 13. The objectivity concept means that financial statement information is supported by independent, unbiased evidence other than someone’s opinion or imagination. This concept increases the reliability and verifiability of financial statement information. 14. This treatment is justified by both the cost principle and the going-concern assumption. 15. The revenue recognition principle provides guidance for managers and auditors so they know when to recognize revenue. If revenue is recognized too early, the business looks more profitable than it is. On the other hand, if revenue is recognized too late the business looks less profitable than it is. This principle demands that revenue be recognized when it is both earned (when service or product provided) and can be measured reliably. The amount of revenue should equal the value of the assets received or expected to be received from the business’s operating activities covering a specific time period. 16. Business organizations can be organized in one of three basic forms: sole proprietorship, partnership, or corporation. These forms have implications for legal liability, taxation, continuity, number of owners, and legal status as follows: Proprietorship Partnership Corporation Business entity yes yes yes Legal entity no no yes Limited liability no* no* yes Unlimited life no no yes Business taxed no no yes One owner allowed yes no yes *Proprietorships and partnerships that are set up as LLCs provide limited liability. 17. (a) Assets are resources owned or controlled by a company that are expected to yield future benefits. (b) Liabilities are creditors’ claims on assets that reflect obligations to provide assets, products or services to others. (c) Equity is the owner’s claim on assets and is equal to assets minus liabilities. (d) Net assets refer to equity. 18. Equity is increased by investments from the owner and by net income (which is the excess of revenues over expenses). It is decreased by withdrawals by the owner and by a net loss (which is the excess of expenses over revenues).
  • 7. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 3 19. Accounting principles consist of (a) general and (b) specific principles. General principles are the basic assumptions, concepts, and guidelines for preparing financial statements. They stem from long-used accounting practices. Specific principles are detailed rules used in reporting on business transactions and events. They usually arise from the rulings of authoritative and regulatory groups such as the Financial Accounting Standards Board or the Securities and Exchange Commission. 20. Revenue (or sales) is the amount received from selling products and services. 21. Net income (also called income, profit or earnings) equals revenues minus expenses (if revenues exceed expenses). Net income increases equity. If expenses exceed revenues, the company has a net loss. Net loss decreases equity. 22. The four basic financial statements are: income statement, statement of owner’s equity, balance sheet, and statement of cash flows. 23. An income statement reports a company’s revenues and expenses along with the resulting net income or loss over a period of time. 24. Rent expense, utilities expense, administrative expenses, advertising and promotion expenses, maintenance expense, and salaries and wages expenses are some examples of business expenses. 25. The statement of owner’s equity explains the changes in equity from net income or loss, and from any owner contributions and withdrawals over a period of time. 26. The balance sheet describes a company’s financial position (types and amounts of assets, liabilities, and equity) at a point in time. 27. The statement of cash flows reports on the cash inflows and outflows from a company’s operating, investing, and financing activities. 28. Return on assets, also called return on investment, is a profitability measure that is useful in evaluating management, analyzing and forecasting profits, and planning activities. It is computed as net income divided by the average total assets. For example, if we have an average annual balance of $100 in a bank account and it earns interest of $5 for the year, then our return on assets is $5 / $100 or 5%. The return on assets is a popular measure for analysis because it allows us to compare companies of different sizes and in different industries. 29A . Return refers to income, and risk is the uncertainty about the return we expect to make. The lower the risk of an investment, the lower the expected return. For example, savings accounts pay a low return because of the low risk of a bank not returning the principal with interest. Higher risk implies higher, but riskier, expected returns. 30B . Organizations carry out three major activities: financing, investing, and operating. Financing provides the means used to pay for resources. Investing refers to the acquisition and disposing of resources necessary to carry out the organization’s plans. Operating activities are the actual carrying out of these plans. (Planning is the glue that connects these activities, including the organization’s ideas, goals and strategies.)
  • 8. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 4 31B . An organization’s financing activities (liabilities and equity) pay for investing activities (assets). An organization cannot have more or less assets than its liabilities and equity combined and, similarly, it cannot have more or less liabilities and equity than its total assets. This means: assets = liabilities + equity. This relation is called the accounting equation (also called the balance sheet equation), and it applies to organizations at all times. 32. The dollar amounts in Polaris’ financial statements are rounded to the nearest thousand ($1,000). Polaris’ consolidated statement of income (or income statement) covers the year ended December 31, 2011. Polaris also reports comparative income statements for the previous two years. 33. At March 31, 2011, Arctic Cat had ($ in thousands) assets of $272,906, liabilities of $89,870, and equity of $183,036. 34. Confirmation of KTM’s accounting equation follows (numbers in EUR thousands): Assets = Liabilities + Equity 485,775 = 266,000 + 219,775 35. The independent auditor for Polaris, is Ernst & Young, LLP. The auditor expressly states that “our responsibility is to express an opinion on these consolidated financial statements and schedule based on our audits.” The auditor also states that “these financial statements and the schedule are the responsibility of the Company’s management.”
  • 9. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 5 QUICK STUDIES Quick Study 1-1 (a) and (b) GAAP: Generally Accepted Accounting Principles Importance: GAAP are the rules that specify acceptable accounting practices. SEC: Securities and Exchange Commission Importance: The SEC is charged by Congress to set reporting rules for organizations that sell ownership shares to the public. The SEC delegates part of this responsibility to the FASB. FASB: Financial Accounting Standards Board Importance: FASB is an independent group of full-time members who are responsible for setting accounting rules. IASB: International Accounting Standards Board. Importance: Its purpose is to issue standards that identify preferred practices in the desire of harmonizing accounting practices across different countries. The vast majority of countries and financial exchanges support its activities and objectives. IFRS: International Financial Reporting Standards. Importance: A global set of accounting standards issued by the IASB. Many countries require or permit companies to comply with IFRS in preparing their financial statements. The FASB is undergoing a process with the IASB to converge GAAP and IFRS and to create a single set of accounting standards for global use. Quick Study 1-2 a. E g. E b. E h. E c. E i. I d. E j. E e. I k. E f. E l. I
  • 10. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 6 Quick Study 1-3 Internal controls serve several purposes:  They involve monitoring an organization’s activities to promote efficiency and to prevent wrongful use of its resources.  They help ensure the validity and credibility of accounting reports.  They are often crucial to effective operations and reliable reporting. More generally, the absence of internal controls can adversely affect the effectiveness of domestic and global financial markets. Examples of internal controls include cash registers with internal tapes or drives, scanners at doorways to identify tagged products, overhead video cameras, security guards, and many others. Quick Study 1-4 Accounting professionals practice in at least four main areas. These four areas, along with a listing of some work opportunities in each, are: 1. Financial accounting  Preparation  Analysis  Auditing (external)  Consulting  Investigation 2. Managerial accounting  Cost accounting  Budgeting  Auditing (internal)  Consulting 3. Tax accounting  Preparation  Planning  Regulatory  Consulting  Investigation 4. Accounting-related  Lending  Consulting  Analyst  Investigator  Appraiser
  • 11. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 7 Quick Study 1-5 The choice of an accounting method when more than one alternative method is acceptable often has ethical implications. This is because accounting information can have major impacts on individuals’ (and firms’) well-being. To illustrate, many companies base compensation of managers on the amount of reported income. When the choice of an accounting method affects the amount of reported income, the amount of compensation is also affected. Similarly, if workers in a division receive bonuses based on the division’s income, its computation has direct financial implications for these individuals. Quick Study 1-6 a. Revenue recognition principle b. Cost principle (also called historical cost) c. Business entity assumption Quick Study 1-7 Assets = Liabilities + Equity $700,000 (a) $280,000 $420,000 $500,000 (b) $250,000 (b) $250,000 Quick Study 1-8 Assets = Liabilities + Equity $75,000 (a) $35,000 $40,000 (b) $95,000 $25,000 $70,000 $85,000 $20,000 (c) $65,000
  • 12. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 8 Quick Study 1-9 (a) Examples of business transactions that are measurable include:  Selling products and services.  Collecting funds from dues, taxes, contributions, or investments.  Borrowing money.  Purchasing products and services. (b) Examples of business events that are measurable include:  Decreases in the value of securities (assets).  Bankruptcy of a customer owing money.  Technological advances rendering patents (or other assets) worthless.  An “act of God” (casualty) that destroys assets. Quick Study 1-10 a. For December 31, 2011, the account and its dollar amount (in thousands) for Polaris are: (1) Assets = $1,228,024 (2) Liabilities = $ 727,968 (3) Equity = $ 500,056 b. Using Polaris’ amounts from (a) we verify that (in millions): Assets = Liabilities + Equity $1,228,024 = $ 727,968 + $ 500,056 Quick Study 1-11 [Code: Income statement (I), Balance sheet (B), Statement of owner’s equity (E), or Statement of cash flows (CF).] a. B d. B g. CF b. CF e. I h. I c. E* f. B i. B *The more advanced student might know that this item could also appear on the CF.
  • 13. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 9 Quick Study 1-12 Return on assets = = = 8.2% Interpretation: Its return of 8.2% is slightly above the 8% of its competitors. Home Depot’s performance can be rated as above average. Quick Study 1-13 (10 minutes) a. International Financial Reporting Standards (IFRS) b. Convergence desires to achieve a single set of accounting standards for global use. c. The FASB is to develop a transition plan to effect these changes over the next five years or so. For updates on this roadmap, we can check with the AICPA (IFRS.com), FASB (FASB.org), and IASB (IASB.org.uk). $3,338 $40,501 Net income Average total assets
  • 14. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 10 EXERCISES Exercise 1-1 (10 minutes) 1. A 5. C 2. B 6. C 3. A 7. B 4. A 8. B Exercise 1-2 (10 minutes) C 1. Analyzing and interpreting reports C 2. Presenting financial information R 3. Maintaining a log of service costs R 4. Measuring the costs of a product C 5. Preparing financial statements I 6. Establishing revenues generated from a product I 7. Determining employee tasks behind a service Exercise 1-3 (20 minutes) Part A. 1. I 5. I 2. I 6. E 3. E 7. I 4. E 8. I Part B. 1. I 5. I 2. E 6. E 3. I 7. I 4. E
  • 15. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 11 Exercise 1-4 (20 minutes) a. Situations involving ethical decision making in coursework include performing independent work on examinations and individually completing assignments/projects. It can also extend to promptly returning reference materials so others can enjoy them, and to properly preparing for class to efficiently use the time and question period to not detract from others’ instructional benefits. b. Managers face several situations demanding ethical decision making in their dealings with employees. Examples include fairness in performance evaluations, salary adjustments, and promotion recommendations. They can also include avoiding any perceived or real harassment of employees by the manager or any other employees. It can also include issues of confidentiality regarding personal information known to managers. c. Accounting professionals who prepare tax returns can face situations where clients wish to claim deductions they cannot substantiate. Also, clients sometimes exert pressure to use methods not allowed or questionable under the law. Issues of confidentiality also arise when these professionals have access to clients’ personal records. d. Auditing professionals with competing audit clients are likely to learn valuable information about each client that the other clients would benefit from knowing. In this situation the auditor must take care to maintain the confidential nature of information about each client.
  • 16. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 12 Exercise 1-5 (10 minutes) Code Description Principle/Assumption E 1. Usually created by a pronouncement from an authoritative body. Specific accounting principle G 2. Financial statements reflect the assumption that the business continues operating. Going-concern assumption A 3. Derived from long-used and generally accepted accounting practices. General accounting principle C 4. Every business is accounted for separately from its owner or owners. Business entity assumption D 5. Revenue is recorded only when the earnings process is complete. Revenue recognition principle B 6. Information is based on actual costs incurred in transactions. Cost principle F 7. A company records the expenses incurred to generate the revenues reported. Matching (expense recognition) principle H. 8. A company reports details behind financial statements that would impact users' decisions. Full disclosure principle Exercise 1-6 (10 minutes) 1. C 4. A 2. F 5. G 3. D Exercise 1-7 (10 minutes) a. Corporation e. Sole proprietorship b. Sole proprietorship f. Sole proprietorship c. Corporation g. Corporation d. Partnership
  • 17. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 13 Exercise 1-8 (20 minutes) a. Using the accounting equation: Assets = Liabilities + Equity $123,000 = $47,000 + ? Thus, equity = $76,000 b. Using the accounting equation at the beginning of the year: Assets = Liabilities + Equity $300,000 = ? + $100,000 Thus, beginning liabilities = $200,000 Using the accounting equation at the end of the year: Assets = Liabilities + Equity $300,000 + $80,000 = $200,000+ $50,000 + ? $380,000 = $250,000 + ? Thus, ending equity = $130,000 Alternative approach to solving part (b): Assets($80,000) = Liabilities($50,000) + Equity(?) where “” refers to “change in.” Thus: Ending Equity = $100,000 + $30,000 = $130,000 c. Using the accounting equation at the end of the year: Assets = Liabilities + Equity $190,000 = $70,000 - $5,000 + ? $190,000 = $65,000 + $125,000 Using the accounting equation at the beginning of the year: Assets = Liabilities + Equity $190,000 - $60,000 = $70,000 + ? $130,000 = $70,000 + ? Thus: Beginning Equity = $60,000
  • 18. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 14 Exercise 1-9 (10 minutes) Assets = Liabilities + Equity (a) $ 65,000 = $ 20,000 + $45,000 $100,000 = $ 34,000 + (b) $66,000 $154,000 = (c) $114,000 + $40,000 Exercise 1-10 (15 minutes) Examples of transactions that fit each case include: a. Cash withdrawals (or some other asset) paid to the owner of the business; OR, the business incurs an expense paid in cash. b. Business purchases equipment (or some other asset) on credit. c. Business signs a note payable to extend the due date on an account payable; OR, the business renegotiates a liability (perhaps to obtain a lower interest rate.) d. Business pays an account payable (or some other liability) with cash (or some other asset). e. Business purchases office supplies (or some other asset) for cash (or some other asset). f. Business incurs an expense that is not yet paid (for example, when employees earn wages that are not yet paid). g. Owner invests cash (or some other asset) in the business; OR, the business earns revenue and accepts cash (or another asset).
  • 19. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 15 Exercise 1-11 (30 minutes) Assets = Liabilities + Equity Cash + Accounts Receivable + Equip- ment = Accounts Payable + Holden, Capital – Holden, With- drawals + Revenues – Expenses a. +$60,000 + $15,000 = + $75,000 b. – 1,500 ______ ______ – $1,500 Bal. 58,500 + + 15,000 = + 75,000 – 1,500 c. _______ + 10,000 +$10,000 ______ _____ Bal. 58,500 + + 25,000 = 10,000 + 75,000 – 1,500 d. + 2,500 ______ _______ ______ + $2,500 _____ Bal. 61,000 + + 25,000 = 10,000 + 75,000 + 2,500 – 1,500 e. _______ + $8,000 ______ _______ ______ + 8,000 _____ Bal. 61,000 + 8,000 + 25,000 = 10,000 + 75,000 + 10,500 – 1,500 f. – 6,000 ______ + 6,000 _______ ______ _____ _____ Bal. 55,000 + 8,000 + 31,000 = 10,000 + 75,000 + 10,500 – 1,500 g. – 3,000 ______ ______ _______ ______ _____ – 3,000 Bal. 52,000 + 8,000 + 31,000 = 10,000 + 75,000 + 10,500 – 4,500 h. + 5,000 - 5,000 ______ _______ ______ _____ _____ Bal. 57,000 + 3,000 + 31,000 = 10,000 + 75,000 + 10,500 – 4,500 i. – 10,000 ______ ______ – 10,000 ______ _____ _____ Bal. 47,000 + 3,000 + 31,000 = 0 + 75,000 + 10,500 – 4,500 j. – 1,000 ______ ______ _______ ______ – $1,000 _____ _____ Bal. $46,000 + $3,000 + $31,000 = $ 0 + $75,000 – $1,000 + $10,500 – $4,500 Exercise 1-12 (20 minutes) a. Started the business with the owner investing $40,000 cash in the business. b. Purchased office supplies for $3,000 by paying $2,000 cash and putting the remaining $1,000 balance on credit. c. Purchased office furniture by paying $8,000 cash. d. Billed a customer $6,000 for services earned. e. Provided services for $1,000 cash.
  • 20. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 16 Exercise 1-13 (20 minutes) a. Purchased land for $4,000 cash. b. Purchased $1,000 of office supplies on credit. c. Billed a client $1,900 for services provided. d. Paid the $1,000 account payable created by the credit purchase of office supplies in transaction b. e. Collected $1,900 cash for the billing in transaction c. Exercise 1-14 (15 minutes) REAL ANSWERS Income Statement For Month Ended October 31 Revenues Consulting fees earned......................... $14,000 Expenses Salaries expense .................................. $7,000 Rent expense........................................ 3,550 Telephone expense .............................. 760 Miscellaneous expenses....................... 580 Total expenses...................................... 11,890 Net income ................................................... $ 2,110 Exercise 1-15 (15 minutes) REAL ANSWERS Statement of Owner’s Equity For Month Ended October 31 King, Capital, October 1 ..................................... $ 0 Add: Owner’s investment............................. 84,000 Net income (from Exercise 1-14) ........... 2,110 86,110 Less: Withdrawals by owner ......................... 2,000 King, Capital, October 31 ................................... $84,110
  • 21. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 17 Exercise 1-16 (15 minutes) REAL ANSWERS Balance Sheet October 31 Assets Liabilities Cash ............................... $11,360 Accounts payable.................... $ 8,500 Accounts receivable ....... 14,000 Office supplies................ 3,250 Equity Office equipment ............ 18,000 King, Capital* ............. 84,110 Land ............................... 46,000 _______ Total assets .................... $92,610 Total liabilities and equity........ $92,610 * For the computation of this amount see Exercise 1-15. Exercise 1-17 (15 minutes) REAL ANSWERS Statement of Cash Flows For Month Ended October 31 Cash flows from operating activities Cash received from customers................................................ $ 0 Cash paid to employees1 ........................................................ (1,750) Cash paid for rent.................................................................... (3,550) Cash paid for telephone expenses.......................................... (760) Cash paid for miscellaneous expenses................................... (580) Net cash used by operating activities...................................... (6,640) Cash flows from investing activities Purchase of office equipment.................................................. (18,000) Net cash used by investing activities ...................................... (18,000) Cash flows from financing activities Investments by owner ............................................................. 38,000 Withdrawals by owner ............................................................. (2,000) Net cash provided by financing activities ................................ 36,000 Net increase in cash................................................................ $11,360 Cash balance, October 1......................................................... 0 Cash balance, October 31....................................................... $11,360 1 $7,000 Salaries Expense - $5,250 still owed = $1,750 paid to employees.
  • 22. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 18 Exercise 1-18 (10 minutes) Return on assets = Net income / Average total assets = $40,000 / [($200,000 + $300,000)/2] = 16% Interpretation: Swiss Group’s return on assets of 16% is markedly above the 10% return of its competitors. Accordingly, its performance is assessed as superior to its competitors. Exercise 1-19 (10 minutes) O 1. Cash paid for advertising O 5. Cash paid for rent O 2. Cash paid for wages O 6. Cash paid on an account payable F 3. Cash withdrawal by owner F 7. Cash investment by owner I 4. Cash purchase of equipment O 8. Cash received from clients Exercise 1-20B (10 minutes) a. Financing* b. Investing c. Investing d. Operating e. Financing * Would also be listed as “investing” if resources contributed by owner were in the form of nonfinancial resources.
  • 23. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Solutions Manual, Chapter 1 19 Exercise 1-21 (20 minutes) NINTENDO Income Statement For Year Ended March 31, 2011 (Japanese Yen in millions) Net sales ...................................................................... ¥ 1,014,345 Expenses Cost of sales.............................................................. ¥626,379 Selling, general and administrative expenses ........... 216,889 Other expenses ......................................................... 93,456 Total expenses .......................................................... 936,724 Net income...................................................................... ¥ 77,621
  • 24. ©2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Fundamental Accounting Principles, 21st Edition 20 PROBLEM SET A Problem 1-1A (40 minutes) Part 1 Company A (a) Equity on December 31, 2012: Assets........................................................... $55,000 Liabilities....................................................... (24,500) Equity ........................................................... $30,500 (b) Equity on December 31, 2013: Equity, December 31, 2012.......................... $30,500 Plus investment by owner ............................ 6,000 Plus net income............................................ 8,500 Less withdrawals by owner .......................... (3,500) Equity, December 31, 2013.......................... $41,500 (c) Liabilities on December 31, 2013: Assets........................................................... $58,000 Equity ........................................................... (41,500) Liabilities....................................................... $16,500 Part 2 Company B (a) and (b) Equity: 12/31/2012 12/31/2013 Assets.................................... $34,000 $40,000 Liabilities................................ (21,500) (26,500) Equity .................................... $12,500 $13,500 (c) Net income for 2013: Equity, December 31, 2012....................... $12,500 Plus investment by owner ......................... 1,400 Plus net income......................................... ? Less withdrawals by owner ....................... (2,000) Equity, December 31, 2013....................... $13,500 Therefore, net income must have been $ 1,600
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  • 26. [I-68] Frontenac to Red Wing, some 13 miles by present channel, whence it is a couple of miles further to the head of the island opp. Cannon r. camp. Pike coasts the Minnesota shore till he finishes with the lake at the mouth of Bullard's or Ida cr., a streamlet that makes in at a town called after the chief Wakouta, Wacouta, Wakuta, etc. Here he enters one of the channels by which the Mississippi finds its way into the lake, no doubt the middle one, then as now the main one, which, however, soon joins the south one; the north channel is narrower, crookeder, shoaler, and connected with some expansions known as Upper and Lower lakes and Goose bay. The town of Red Wing is situated on the S. side of a sharp bend the river makes in coming from the Cannon, on a plain under bluffs that nearly encompass the town; one of these is specially notable as the isolated elevation forming a conspicuous landmark on the very brink of the river. This is Barn bluff, or Barn mountain, so named by tr. of F. La Grange; it is ¾ of a mile long and 345 feet above low water mark; "upon the highest point of the Grange. Major Long, who ascended it in 1817, observed an artificial mound, whose elevation above its base was about five feet," Keating, I. p. 296. Nicollet made the altitude 322 feet, with commendable caution; Owen gave 350 feet, almost correctly. This word Grange is often found as Gange: thus Beltrami has in text, p. 189, mountain of the Gange, and Gange
  • 27. r.; latter also on map, and I suppose Ganges r. could be found, even at this distance from India. About the mouth of Cannon r., opp. Pike's camp, there was a place called Remnichah; both Nicollet and Owen chart Remnicha r. or cr. as a stream falling in close to the mouth. While Remnicha or Hhemnicha was a name of Red Wing's village, it also covered the whole tract from Barn bluff to Cannon r. Mr. A. J. Hill informs me of "a small ravine or coulée which ran through Red Wing's village, and in 1854, when I lived there, was called the Jordan. It only headed a few blocks back, and is now doubtless a sewer or filled up." So Nicollet's Remnicha r. is that now known as Hay cr., above which a certain Spring cr. makes in on the same side. Present town of Trenton, Pierce Co., Wis., is about a mile above camp. [I-69] Discovery of the St. Croix r. is commonly attributed to Accault's party, already mentioned as consisting of himself, Auguelle, and Hennepin, prisoners in the hands of the Sioux at the time. The date is 1680; day in question. According to La Salle's letter of Aug. 22d, 1682, written at Fort Frontenac, in Margry's Relations, II. p. 245 seq., it was very shortly after the 22d of April, 1680, when the Indians who were carrying them off had come up the Mississippi to 8 leagues below the falls of St. Anthony, and then determined to finish their journey by land to their village at Mille Lacs. As the St. Croix is more than 24 m. below Minneapolis, this party must have passed its mouth about the date said. The Memoir of Le Sieur Daniel Greysolon Du Luth to the Marquis of Seignelay, 1685 (Archives of the Ministry of the Marine), states that in June, 1680, he entered a river 8 leagues from the end of Lake Superior, ascended it, made a half league portage, and fell into "a very fine river," which took him to the Mississippi r. This was the St. Croix,
  • 28. which Du Luth thus certainly descended to its mouth at that time. He heard of the captivity of his countrymen with indignation and surprise, hired a Sioux to show him where they were, and rescued them; he says that he put them in his canoes and carried them to Michelimakinak, whence, after wintering there, they set out for the settlements Mar. 29th, 1681. It is quite possible that before the great triangular duel which La Salle, Du Luth, and Hennepin managed to arrange among themselves over the operations of 1680, the St. Croix was seen by the missionary Menard, who in 1661 may have reached the Mississippi by way of the St. Croix or some other way, and was soon after lost. Marquette is not in question here, as he came by the Wisconsin to the Mississippi and went down the latter. So with any other person who reached the Mississippi prior to 1680. Excepting the Menard matter, which is uncertain, the case narrows to Accault's party and Du Luth, within some weeks of each other, late spring and early summer of 1680; the facts appear to be that the former first passed the mouth of the St. Croix, and the latter first descended this river. Hennepin first named the river R. de Tombeau, Descr. Louis., 1683, map; this is translated Tomb r., as, e. g., Shea's Hennepin, 1880, p. 199, where we read: "Forty leagues above [Chippewa r.] is a river full of rapids, by which, striking northwest [read N. E.], you can proceed to Lake Condé [L. Superior], as far as Nimissakouat [in Margry Nemitsakouat, in the Nouv. Déc. Nissipikouet, being the Bois Brûlé] river, which empties into that lake. This first river is called Tomb river because the Issati [Sioux] left there the body of one of their warriors, killed by a rattlesnake, on whom, according to their custom, I put a blanket." Some translate Grave r. On Franquelin's map, 1688, the St. Croix is lettered R. de
  • 29. la Magdelaine, though a certain Fort St. Croix appears about its head; by whom it was first called Magdalene r. I am not informed. Lahontan's map shows nothing here; he was too full of his fabulous Long r. to concern himself much with real rivers. Next come Lesueur and his people, 1695; he had first reached the Mississippi in 1683, and on this his second appearance (his third being in 1700) they built the trading-house called Fort Lesueur on Pelée isl., just below the mouth of the St. Croix, as already noted. His editor, so far as this trip is concerned, is the clever carpenter Penicaut, a sensible, fair-and-square man. Just here comes in the question of the first application of the name St. Croix. The river was already so called and the name in use before 1700; thus, Nicolas Perrot's prise de possession, a document dated at Fort St. Antoine, May 8, 1689, mentions the Rivière-Sainte-Croix. The Carte du Canada ou de la Nouvelle France, par Guillame de L'Isle, Paris, 1703, traces the river and letters it "L. & R. Ste. Croix," i. e., as some have translated it, Lake and River Holy Cross; said lake being, of course, the dilation of the same bottle-nosed river, which issues from a contracted orifice, but is a mile or two wide higher up. But whatever the theological proclivity to suppose this name to have been given for the usual instrument of the execution of Roman malefactors, later put by the Emperor Constantine on his banner, and afterward used for other purposes, it is certain that the Christian crucifix is not directly implied in the name. It is a personal designation, connoting one Sainte Croix or Saint Croix, a trader named in La Harpe's MSS. of Lesueur's third voyage as a Frenchman who had been wrecked there; for we read: "September 16 he [Lesueur] passed on the east a large river called Sainte-Croix, because a Frenchman of that name was shipwrecked at its mouth." Hennepin
  • 30. names Sainte Croix as one of six men who deserted La Salle. A letter written in June, 1684, by Du Luth to Governor De la Barre (who succeeded Frontenac in 1682), states that the writer had met one Sieur de la Croix and his two companions. This case resembles those of La Crosse r. already noted, and St. Pierre r., noted beyond. It may be summed in the statement that St. Croix r., St. Pierre r., and Lake Pepin, were all three so named for persons, by Lesueur or his companions, not earlier than 1683 and not later than 1695; best assignable date, 1689. The river has also been called Hohang or Fish r. (cf. Sioux Hogan-wanke- kin). The character of St. Croix's r. as a waterway to the Great Lakes is elsewhere discussed. This stream now forms the boundary between Wisconsin and Minnesota from its mouth to beyond 46° N., where it splits up into small streams in Burnett Co., Wis. Its general course is not far from S.—it is due S. for many miles before it falls into the Mississippi; which latter, for a great distance above their confluence, has a general bearing S. E. Immediately at the mouth of the St. Croix, on the E., is Prescott, Pierce Co., Wis., the site of which was once recommended by Long for a military post; on the W. is Point Douglas, Washington Co., Minn.; and across the Mississippi, a very little higher up, is Hastings, seat of Dakota Co., Minn., at the mouth of Vermilion r. The above-mentioned dilation of the river into Lake St. Croix extends some 30 m. up from its mouth; and as far above this lake as an Indian ordinarily paddled his canoe in a day was the long-noted Sioux-Chippewa boundary, at a place which became known as Standing Cedars. Thus the river did duty in Indian politics before it set bounds to our Minnesota and Wisconsin. This lake was often called Lower St. Croix l., in distinction from the sizable body of water at the head of the river known as Upper
  • 31. St. Croix l. For the route thence by Burnt r. to Lake Superior, see a note beyond. [I-70] Especially as it leaves us in the lurch for mileage of the 19th. But we can easily overhaul him before he gets to St. Paul, which is only 30 river-miles from Prescott (mouth of St. Croix r.). He did not go far above this river; for he makes it 26½ + 8 = 34½ m. to the Sioux village, which latter was close to the present city limits of St. Paul. If we must set a camp for him, it may be assigned to Hastings, Dakota Co., Minn., 2½ m. above Prescott, Pierce Co., Wis., and 18½ m. below Newport, Washington Co., Minn., in the vicinity of which he will camp to-morrow. "Tattoo," at which the blunderbuss was fired, is not a place, as the context and capitalization might suggest, but a certain military call which is habitually sounded in garrisons and camps in the evening before taps. It marks the hour when the soldiers are supposed to retire to their quarters for their devotions before the lights are put out at taps, and when the officers settle down in earnest for the night's poker. In approaching the St. Croix from his camp opposite Cannon r., Pike has bluffs off his right nearly all the way, and the town of Diamond Bluff, Pierce Co., Wis., is at the point where they first reach to the river, a mile and a half above the mouth of Trimbelle r., right, and 11 m. below Prescott. On the left the bluffs are off the river all the way, and for most of this distance Vermilion slough, running under the bluffs, cuts off an island 11 m. long and at its widest near 3 m. broad. The lower outlet of the slough is below Trimbelle r.; the middle opening is only 3 m. below Prescott; the upper one is at Hastings. The bottom-land of the principal island has several bodies of water, one of them called Sturgeon l., discharging separately from the main slough; and is
  • 32. traversed lengthwise by a sand-bank 6 m. long, which may be called Lesueur's Terrace. For this Prairie or Bald isl. is no doubt that formerly known as Isle Pelée, on which was built Fort Lesueur, 1695. The middle opening of Vermilion slough is in common with a lower outlet of Vermilion r. This is Rapid r. of Long, and Rivière Jaune of the French; "R. Jaune" appears on Franquelin's map, 1688. The upper discharge of this river is at Hastings, and thus above the mouth of the St. Croix; Lake Isabel is a small sheet between the river and the town. The Minnesota county line between Goodhue and Dakota strikes the Mississippi just 1¼ m. below the lower mouth of Vermilion r. At the mouth of the St. Croix the Mississippi ceases or rather begins to separate Wisconsin from Minnesota; so that henceforth Pike proceeds in the latter State. [I-71] Hastings to Newport, 18½ m. by the channel; camp a mile and a half beyond this, vicinity of present Red Rock, Washington Co., at the point on the small strip of prairie where the Sioux had their celebrated red medicine-stone; this was the "large painted stone" Pike observed. It gave name to Red Rock, having meanwhile become a historical object. We read in Long, I. p. 287: "a stone which is held in high veneration by the Indians on account of the red pigment with which it is bedawbed, it is generally called the painted stone.... It is a fragment of syenite, which is about four and a half feet in diameter.... The Indians frequently offer presents to the Great Spirit near this stone," etc. The party found near the stone an eagle's feather, roots of Psoralea esculenta, and willow sticks painted red; they secured a fragment of the idol for their mineralogical collection. At the time of this visit (1823) there was an Indian burying-ground a short distance above—in sight from the spot—if that
  • 33. place can be called a burying-ground where the bodies are not buried in the ground but scaffolded in the air; a mode of disposition of the dead which might be called hypsitaphy, in distinction from bathytaphy or ordinary underground interment. See Pike's remarks on Sioux burial on the 21st. To reach the sacred spot, hallowed by association with the deepest religious emotions of the untutored aboriginal mind, Pike left Hastings, where the river was bridged by the C., M. and St. P. R. R. in 1871 (Act of Minn. Legisl., Feb. 7th, 1867), and soon passed the site of Nininger, Dakota Co., a small town built at the lower point of a steep bluff which fronts the river's edge on the S., at the mouth of the rivulet which serves as the upper discharge of Lake Rebecca or King l.—in fact the whole bottom on his left is an island 2¾ m. long, extending from Hastings to Nininger, being cut off by the slough of which King l. is a dilation. On the right, in Washington Co., bluffs front the river for a mile or more, to the lower opening of Boulanger slough, which cuts off an island 2½ m. long. The immediate frontage of the Nininger bluffs on the river is less than a mile, for they recede at the lower opening of Nininger slough. The river thus winds from side to side of its bed, with alternation of bluffs and bottom on each side. Above Nininger slough the river makes a great loop to the left; the whole irregular curve is subtended on the right by Grey Cloud slough, about 4 m. long direct, and longer by its meanders, thus cutting off Grey Cloud isl., of the same length, and over 2 m. wide in some places; town site Grey Cloud, Washington Co., on the river bank on this island, which also presents at its northern end a limestone rock, 50 to 75 feet above low-water mark, and a mile or more long; this is probably the Medicine Wood of Forsyth, 1819. Near the middle of the loop, on the other side, is
  • 34. the nominis umbra site of Pine Bend, Dakota Co., where the river runs under the hills. This loop was formerly called Détour de Pin or des Pins, whence its modern names Pine bend and Pine turn. The hills border the river pretty closely for 5 m. further, to Merrimac, opposite which is an island of the same name; within 1½ m. of this on the right hand, opposite an island of its own name, is Newport, Washington Co. [I-72] Newport to St. Paul—to a steamboat ldg. about the foot of Wabasha or Robert st.—is 8½ m. by the channel, and considerably more than halfway up to Pike's camp on the island at the mouth of St. Peter's or the Minnesota r. Thus, though Pike calls to-day's voyage "24 miles," it is nearer 14. One who then swept around the bold bend of the river at St. Paul saw a germ of that great metropolis in the humble Sioux village, though only prescience could have divined what time would make of the site above it. A later account than Pike's is given in Keating's Long's Exp. of 1823, pub. 1824, I. p. 289: "Passed an Indian village consisting of ten or twelve huts, situated at a handsome turn on the river, about 10 miles below the mouth of the St. Peter; the village is generally known by the name of the Petit Corbeau, or Little Raven, which was the appellation of the father and grandfather of the present chief. He is called Chetanwakoamene (the good sparrow-hunter). The Indians designate this band by the name of Kapoja, which implies that they are deemed lighter and more active than the rest of the nation." This was a band of Mdewakantonwan Sioux (the Minowa Kantong of Pike), for which, as well as for the celebrated chief himself, see notes beyond. The term which Keating renders Kapoja is now Kaposia, as a designation of the locality
  • 35. of South Park, a place on the west bank of the river; but the old Sioux village was on the east bank, below Frenchman's bar, in the low ground formerly called by the French Grand Marais, rendered by Beltrami Great March (for Great Marsh, II. p. 197), and now rejoicing in the epithet of Pig's Eye marsh or lake. Pig's Eye was the soubriquet of one Peter Parrant, a whisky-seller who squatted on the bottom in 1838, below Carver's Cave in the Dayton bluff. The whole region about the mouth of St. Peter's r. had been a Sioux focus and stamping-ground for generations before any of the localities thereabouts received names from us. The curious origin of the name St. Paul for the present capital was in this wise: The limits of the military reservation about Fort Snelling were authoritatively fixed in 1839. The whisky-traders, loafers, and squatters about the place became so troublesome that the U. S. Marshal of Wisconsin was directed to remove all such intruders, who were given till next spring to decamp; and on May 6th, 1840, the troops were called out to complete the eviction by the destruction of cabins. In the words of E. D. Neill, Minn. Hist. Soc., II. Part 2, 1864, 2d ed. 1881, p. 142: "The squatters then retreated to the nearest point below the military reserve, and there they became the inglorious founders of a hamlet, which was shortly graced with the small Roman Catholic chapel of St. Paul, the name of which is retained by the thrifty capital of Minnesota, which has emerged from the groggeries of 'certain lewd fellows of the baser sort.'" The chapel above mentioned was built by Rev. Lucian Galtier, on what is now Catholic block; it fronted on Bench street. It was dedicated Nov. 1st, 1841. The first marriage bans were those of one Vital Guerin, described as "a resident of St. Paul;" and thus the priest named the place as well as the house, although it was also called for a time St.
  • 36. Paul Landing, because some stores had been put up close by, which caused steamboats to stop there. In 1848, when Minnesota acquired Territorial organization, and the capital was fixed at St. Paul, no such place could be found on ordinary maps; it was some obscure settlement, supposed to be somewhere about the mouth of St. Peter's r., or in the vicinity of St. Anthony's falls, perhaps at a place known as White Rock, or Iminijaska, where some bluffs were more easily discernible than any village. Even down to 40 years ago, or a little before 1858, when Minnesota acquired statehood, St. Paul had only replaced tepees with a sprinkling of log cabins; and people scrambled up the bluff by digging their toes into the ground. The site of the city is one which would hardly have been anticipated as such; nor would the original features of the locality be easily recognized now after all the grading and terracing that has been done to convert the stubborn hills and intractable hollows into a beautiful city of over 190,000 inhabitants. But all this was to be, and is well worth all that it cost. Among the natural features which should be noted in this connection, especially as they have given rise to conflicting historical statements, are Carver's Great Cave in Dayton's bluff, and Nicollet's New (Fountain) Cave, halfway thence to Fort Snelling; but for these, as well as for a third cave close to Carver's, see a note beyond, at date of Apr. 12th, 1806, when Pike's text brings the matter up. [I-73] Jean Baptiste Faribault, b. Berthier, Lower Canada, 1774, d. Faribault, Minn., Aug. 20th, 1860, being at the time the oldest white resident of the present State. Jean Baptiste was the youngest one of 10 children of Bartholomew (who was b. in Paris and came to Canada in 1754); he was in business in
  • 37. Quebec 1790-97, at the latter date entered the employ of J. J. Astor as an agent of the N. W. Co., and was engaged in the Indian trade at various points in the Mississippi region for about 50 years, for the most part on his own account. One of the posts he established was at the mouth of the Minnesota r., where Pike found him. In 1814 he married a half-breed daughter of Major Hause (then Superintendent of Indian Affairs), by whom he had eight children. His Indian name was Chahpahsintay, meaning Beaver Tail. His eldest son, Alexander, founded the present town of Faribault, Minn. Mr. J. B. Faribault "espoused the cause of the U. S. during the war of 1812, and lost many thousand dollars thereby, as well as narrowly escaping with his life on several occasions. He labored all his life to benefit the red man, teach him agriculture and the arts of industry, and protect his interests. He had an unbounded influence over them; his advice was never disregarded. He was prominent at all treaties, and rendered the U. S. many valuable services," says J. F. Williams, Minn. Hist. Coll., I. 2d ed. 1872, p. 377: see also ibid., p. 468. An extended memoir of Faribault, by General H. H. Sibley, occupies pp. 168-79 of III. of the Minn. Hist. Coll., 1874. [I-74] The history of the discovery of St. Peter's r., off the mouth of which Pike is now camped, is involved in some obscurity, which modern research has not wholly cleared up, though the main facts have probably been certified. (1) It has been conceded since Carver's time that Hennepin missed the river. Discovery has not been traced back of Lesueur's time. Lesueur was first on the Mississippi hereabouts in 1683; next in 1695, when he built on Pelée isl., just below the St. Croix; and again in 1700; both these rivers are noted in the treatise of Nicolas Perrot, and before 1700 the river of
  • 38. St. Pierre had been so named. (2) Charlevoix's account, Hist. N. Fr., Paris, 1744, IV. pp. 165, 166, is in substance: In 1700 Lesueur, sent by D'Iberville to establish himself in the Sioux country and take possession of a copper-mine que le Sueur y avait découverte, had already discovered there, some time before; ascended St. Peter 40 leagues to Rivière Verte (now Blue Earth r.) which comes in on the left hand as you go up; ascended this Green r. 1 league; built a fort and wintered there, 1700-1; in April, "1702," for which read 1701, went up Green r. ¾ league to his mine and in 22 days got out over 30,000 lbs. of ore, of which 4,000 selected lbs. were sent to France; there was a mountain of this mineral 10 leagues long, etc. (3) The Amer. Philos. Society's copy of the MS. of Bénard de la Harpe is carefully digested by Keating in Long's Exp., I. pp. 317-322. This MS. is entitled: "Journal historique concernant l'établissement des Français à la Louisianne, tiré des mémoires de Messrs. d'Iberville et de Bienville, etc., par M. Bénard de la Harpe." The original of this copy was in the hands of Dr. Sibley, who certifies to the correctness of the copy in a note annexed, dated Natchitoches, Oct. 29th, 1805. Some of the contents of this MS. are: (a) Lesueur and d'Iberville, with 30 hands, reached the mouth of the Mississippi Dec., 1699. Lesueur was sent there by M. l'Huillier, fermier général, under orders to establish himself at a place near the sources of the Mississippi, where he had previously discovered a green ore, i. e., in 1695. The substance of the 1695 discovery is: Lesueur built a fort on an island (Isle Pelée, now Prairie isl.) in the Mississippi over 200 m. above the Illinois, by order of Count Frontenac; and the same year he went to Montreal with the Chippewa chief Chingouabé and the Sioux chief Tioscaté, the latter the first of his nation that ever was in Canada, and
  • 39. received very kindly by the authorities in view of what they hoped to make out of his country. With this Sioux chief Lesueur had intended to reascend the Mississippi in 1696; but the former died at Montreal after 33 days' illness. Lesueur, thus released from an obligation to go back with the chief to the country where he had discovered the ore, determined to go to France to ask leave to open mines; this voyage he made, and had his permit in 1697. June, 1697, he embarked at La Rochelle for Canada; was captured by the British on the Newfoundland banks and carried to Portsmouth; after peace, returned to Paris for a new commission, which was issued to him in 1698; went to Canada with this; various obstacles threw him back to Europe; and meanwhile part of the men whom he had left in charge in 1695 abandoned their posts and proceeded to Montreal. Thus operations on the mines were suspended from 1695 to 1700, for Lesueur and d'Iberville, with their 30 workmen, as we have seen, only reached the mouth of the Mississippi in Dec., 1699. (b) The MS. we are following states, under date of Feb. 10th, 1702, that Lesueur was that day come to the mouth of the Mississippi with 2000 quintaux of blue and green earth. This he certainly had got on his tour of Dec., 1699-Feb., 1702, from and back to the mouth of the Mississippi, and he had got it from the mine he opened and worked on Rivière Verte or Blue Earth r., the principal branch of St. Peter's. The MS. contains a narrative of this tour from July 12th to Dec. 13th, 1700. It appears that Lesueur moved as follows: July 13th, mouth of the Missouri; Sept. 1st, mouth of the Wisconsin; Sept. 14th, mouth of the Chippewa (on one of whose branches he had found a 60-lb. mass of copper during his previous journey); same day, Lake Pepin, so designated in the MS.; 16th, passed La Croix r., so called from a Frenchman wrecked there; 19th,
  • 40. entered St. Peter's r.; Oct. 1st had ascended this for 44¼ leagues, and then entered Blue r., so called for the color of the earth on its banks; started an establishment at or more probably near the mouth of Blue r., at what the MS. gives as lat. 44° 13´ N.; Oct. 14th, finished the works, which were named Fort L'Huillier; Oct. 26th, went to the mine with three canoes, which he loaded with colored earth taken from mountains near which were mines of copper, samples of which L'Huillier had assayed at Paris in 1696. Lesueur wintered there, 1700-1, and, as we have seen, was back to the mouth of the Mississippi Feb. 10th, 1702. (c) From these historical data Keating in Long, 1823, I. p. 320, infers that St. Peter's and the Blue (Blue Earth) rivers were those streams which Lesueur had ascended in 1695, which date is consequently assigned to the discovery, without reference back to 1683. This inference is made "from the circumstance that they are mentioned as well known, and not as recently discovered; and more especially from the observation of la Harpe, that the eastern Sioux having complained of the situation of the fort [L'Huillier], which they would have wished to see at the confluence of the St. Peter and Mississippi, M. le Sueur endeavoured to reconcile them to it. 'He had foreseen,' says la Harpe, 'that an establishment on the Blue river would not be agreeable to the eastern Sioux, who are the rulers of all the other Sioux, because they were the first with whom the French traded, and whom they provided with guns; nevertheless, as this undertaking had not been commenced with the sole view of trading for beavers, but in order to become thoroughly acquainted with the quality of the various mines which he had previously discovered there [italics Keating's], he replied to the natives that he was sorry he had not been made
  • 41. sooner acquainted with their wishes, &c., but that the advanced state of the season prevented his returning to the mouth of the river.' No mention is made in this narrative of the stream being obstructed with ice, a circumstance which, had it really occurred, would, we think, have been recorded by de la Harpe, who appears to have been a careful and a curious observer, and who undoubtedly saw le Sueur's original narrative." (4) On the foregoing data Nicollet, Rep. 1843, p. 18, has some judicious remarks in fixing Lesueur's locality with precision: "On the left bank of the Mankato [Green, Blue, or Blue Earth r.], six miles from its mouth, in a rocky bluff composed of sandstone and limestone, are found cavities in which the famed blue or green earth, used by the Sioux as their principal pigment, is obtained. This material is nearly exhausted, and it is not likely that this is the spot where a Mr. Lesueur (who is mentioned in the Narrative of Major Long's Second Expedition, as also by Mr. Featherstonhaugh) could, in his third voyage, during the year 1700, have collected his 4000 pounds of copper earth sent by him to France. I have reason to believe that Lesueur's location is on the river to which I have affixed his name, and which empties into the Mankato three-quarters of a league above Fort L'Huillier, built by him and where he spent a winter. This location corresponds precisely with that given by Charlevoix, whilst it is totally inapplicable to the former. Here the blue earth is abundant in the steep and elevated hills at the mouth of this river, which hills form a broken country on the right side of the Mankato. Mr. [J. C.] Fremont and myself have verified this fact: he, during his visit to Lesueur river; and I, upon the locality designated by Mr. Featherstonhaugh, where the Ndakotahs formerly assembled in great numbers to collect it, but to which they now seldom
  • 42. resort, as it is comparatively scarce—at least so I was informed by Sleepy-eye, the chief of the Sissitons, who accompanied me during this excursion." (5) Featherstonhaugh's remarks, Canoe Voyage, etc., I. p. 280 and p. 304, seem to me less judicious than likely to make the judicious grieve; in fine, they are singularly obtuse to have come from so British a man and so clever a story-teller. He heads a page in caps, "The Copper-mine, a Fable;" he has in text, "finding the copper-mine to be a fable"; again: "that either M. le Sueur's green cupreous earth had not corresponded to the expectations he had raised, or that the whole account of it was to be classed with Baron Lahontan's" fables, etc. This sort of talk would befog the whole subject, were it not obvious that it has no bearing whatever upon the historico-geographical case we are discussing. The question is where Lesueur went, and when he got there—not at all what he found there. It is obtuse, I say, because unintentionally misleading, for F'gh to say that, when he reached the bluff whence the pigment had been taken, "Le Sueur's story lost all credit with me, for I instantly saw that it was nothing but a continuation of the seam which divided the sandstone from the limestone ... containing a silicate of iron of a blueish-green color." In the first place, F'gh was not at exactly the right spot, which Nicollet has pointed out. Secondly, though Lesueur should have been mistaken or mendacious about any copper-mine being in that region—though he should not have collected 30,000 lbs. of ore in 22 days, or even a gunny-sack full of anything in a year—though the mountains should shrink to bluffs, and the whole commercial features of the case turn into the physiognomy of the wild-cat—that would not affect the historical and geographical facts, viz.: Lesueur ascended the St. Peter's to the Mankato, and this as
  • 43. far at least as its first branch, thus exploring both these rivers in 1700. Item, he had been to if not also up the river of St. Pierre in 1695; and it had been known since his first voyage in 1683. (6) As to the name Rivière St. Pierre, or de St. Pierre, which we have translated St. Peter, or St. Peter's r., the former obscurity of its origin has, I think, been almost entirely cleared up. Keating's Long, 1824, I. p. 322, has: "We have sought in vain for the origin of the name; we can find no notice of it; it appears to us at present not unlikely that the name may have been given by le Sueur in 1795 [slip for 1695], in honor of M. de St. Pierre Repantigni, to whom La Hontan incidentally alludes (I. p. 136) as being in Canada in 1789 [i. e., 1689]. This person may have accompanied le Sueur on his expedition." Keating does not cite in this connection the remark of Carver, ed. 1796, p. 35: "Here [at Lake Pepin] I discovered the ruins of a French factory, where it is said Captain St. Pierre resided, and carried on a very great trade with the Naudowessies [Sioux], before the reduction of Canada." This person was Jacques Le Gardeur St. Pierre, who in 1737 commanded the fort on Lake Pepin (Fort Beauharnois). One Fort St. Pierre was built at Rainy l. late in 1731; J. Le G. St. Pierre was there in 1751: for extended notice of him, see Neill, Macalester Coll. Cont., No. 4, 1890, pp. 136-40. His father was Captain Paul St. Pierre, who was sent to the French post (Maison Françoise) at La Pointe (Chaquamegon bay) in 1718. Nicollet, Rep. 1843, p. 68, cites Carver, and states: "I have no hesitation in assigning its [the name's] origin to a Canadian by the name of De St. Pierre, who resided for a long time thereabouts." The name appears for the first time in Perrot's report, of the date 1689, which is also the most probable date of naming the St. Croix r. and Lake Pepin. The only
  • 44. question left is, whether the river was not named to compliment Pierre Lesueur himself. Whoever the St. Pierre whose name the river bears may prove to be, the name is a personal one, which we should not have translated into English St. Peter; for it certainly has nothing to do with the legendary saint so styled, whose career is connected with the crowing of cocks three times more than with the course of any river. Had the stream been named by some priest for such a sadly overworked patron as the apocryphal first Bishop of Rome, we should have heard all about it in the Jesuit Relations or elsewhere. (7) The suggestion that the name St. Pierre is a perversion of sans pierres ("without stones"), may be dismissed as too good to be true; for it is a settled principle of sound philology that the easiest etymologies are the most likely to have been invented to fit the case, ex post-facto. (8) As to native names, Nicollet says, l. c.: "The name which the Sioux give to the St. Peter's river is Mini- sotah; and to St. Peter's, as a station [Mendota], Mdote-mini-sotah. The adjective sotah is of different translation. The Canadians translate it by a pretty equivalent French word, brouillé—perhaps most properly rendered into English by blear; as, for instance, mini sotah, blear water, or the entrance of blear water. I have entered into this explanation, because the word sotah really means neither clear nor turbid, as some authors have asserted; its true meaning being readily found in the Sioux expression ishta-sotah, blear-eyed.... The Chippeways are more accurate; by them, the St. Peter's river [is called] Ashkibogi-sibi, the Green Leaf river." It occurs to me that the distinction Nicollet draws would correspond to translucent, as distinguished on the one hand from colorless or transparent water, and on the other from opaque or turbid water. I may also refer to the old
  • 45. medical term, gutta serena, for forming cataract of the eye, when clear vision is obscured by a degree of opacity that does not entirely exclude light. As applied to water, Sioux sotah may be about equivalent to Greek γλαυκός, Latin glaucus, variously rendered "gray," "bluish-green," etc., and Nicollet's "blear-eyed" be equivalent to what was called glaucoma (γλαύκωμα). Notice what Pike says above of the color of the water; but it must be added that, when he speaks of the Mississippi as "remarkably red," we must understand only a reddish-yellow hue of its shoal portions, imparted by its sands; and by "black as ink," only the darker color of deeper places where the sands do not show through. The name Mini-sota has a number of variants: for example, Carver, who wintered on it Nov., 1766-Apr., 1767, has "the River St. Pierre, called by the natives the Waddapawmenesotor"; with which compare Watapan Menesota of Long, Watpàmenisothé of Beltrami, and the title of Featherstonhaugh's diverting book, "A Canoe Voyage up the Minnay Sotor," etc. It has become fixed of late years, since an Act of Congress, approved June 19th, 1852 (Stat. at Large, X. p. 147), decreed that the noble river should bear the name of the State through which it flows. (9) The Minnesota r. appears on various old maps of Louisiana (not on Hennepin's, 1683). Franquelin's, 1688, traces it without any name, but letters it with the name of the Indians, "Les Mascoutens Nadouescioux," i. e., Sioux of the Prairie, Gens du Large of the French, collectively, as distinguished from Gens du Lac. De L'Isle's map, 1703, has "R. St. Pierre." [II-1] The village which Pike visited is marked on his map on the west, upper, or left bank of the Minnesota r., which here runs little E. of N. into the Mississippi.
  • 46. The hill on the point whence the Sioux saluted him so savagely was the scene of many a more warlike demonstration in after-years; for here was built Fort St. Anthony, later known as Fort Snelling, one of the most important and permanent military establishments in the United States, and for nearly half a century the most notable place on the Mississippi above Prairie du Chien. It was erected on the land which Pike secured by the transaction his text is about to describe, and which extended thence up the river to include the falls of St. Anthony, and thus the site of the present great city of Minneapolis, with St. Paul the twin metropolis of the Northwest. The location of Fort Snelling is in Nicollet's opinion "the finest site on the Mississippi river"; and I should be the last to dissent from this judgment, after my enjoyable visit to the fort in 1873, at the invitation of General Alexander. The bluff headland is about 105 feet above the water; the two rivers separated by this rocky point are respectively over 300 and nearly 600 feet broad. The height of Pilot Knob, across the Minnesota r., is about 250 feet. The plateau on the point of which the fort is situated stretches indefinitely S. W.; 8 m. direct N. W. are Minneapolis and the falls. The Mississippi receives the Minnesota at the point of greatest convexity of a deep bend to the S., duplicating that bend to the N. on which St. Paul is situated, the two together forming quite a figure of s. Nothing came of Pike's recommendation of this site for a military post till a report to the same effect was made by Major Long, after his expedition of 1817, during which he reached the place at 2 p. m., Wednesday, July 16th. On Feb. 10th, 1819, the Secretary of War, John C. Calhoun, ordered the 5th infantry to proceed to the Mississippi and establish regimental headquarters at the mouth of St. Peter's r. A detachment of troops, mustering 98
  • 47. rank and file, under Colonel Henry Leavenworth, who had become lieutenant-colonel of that regiment Feb. 10th, 1818, was first cantoned at New Hope, near Mendota, Sept. 24th, 1819, and preparations were begun at once for a permanent structure. The winter of 1819-20 was disastrous from scurvy. On May 5th, 1820, camp was shifted to a place near a spring, above the graveyard, and was thereupon named Camp Coldwater. In the spring of 1820 Jean Baptiste Faribault located himself in the vicinity; Governor Lewis Cass came from his exploration of the upper Mississippi during the summer, and Lawrence Taliaferro's Indian agency was established as Camp St. Peter's. As usual, the colonel commanding and the Indian agent clashed, notably in the matters of medals and whisky. In August, 1820, Colonel Josiah Snelling, who had become colonel of the regiment June 1st, 1819, arrived and relieved Colonel Leavenworth of the command. He determined to build on the point originally selected by Pike. The corner-stone of Fort St. Anthony is supposed to have been laid Sept. 10th, 1820; and the building was so far forward in the autumn of 1822 that the troops moved in, though it was not completed. It is traditional that a tree on which Pike had cut his name was ordered to be spared in the process of construction; but, if so, it soon disappeared. On May 10th, 1823, the first steamboat, the Virginia, reached the fort. It brought among other notables the Chevalier Beltrami. On July 3d, 1823, Major Long arrived, en route to his exploration of St. Peter's r. In 1824 General Winfield Scott visited the fort on a tour of inspection. It does not appear to have struck anybody before that the name of a professional saint of the Prince of Peace was absurdly inapplicable to any military establishment. General Scott very sensibly reported that the name was "foreign to all our
  • 48. associations," besides being "geographically incorrect," and recommended the post to be named Fort Snelling, in well-deserved compliment to the distinguished officer who had built it. The story of Fort Snelling, from its inception to the end of all Indian collisions, is an integral and very prominent part of the history of Minnesota; it is an honorable record, of which citizens and soldiery may be equally proud—one replete with stirring scenes and thrilling episodes, which in the lapse of years tradition has delighted to set in all the glamour of romance. But the most sober historians have found a wealth of material in the stern actualities of Fort Snelling. The facts in the case need no embellishment. The following are some of the many references that could be given to the early history of Fort Snelling: Occurrences in and around Fort Snelling from 1819 to 1840, E. D. Neill, M. H. C., II. Part 2, 1864; 2d ed. 1881, pp. 102-42. Early Days at Fort Snelling, Anon., M. H. C., I. Part 5, 1856; 2d ed. 1872, pp. 420-438 (many inaccuracies in dates, etc.). Running the Gauntlet, ibid., pp. 439-56, Anon., believed to be by W. J. Snelling, son of Josiah Snelling. Reminiscences of Mrs. Ann Adams, 1821-29, M. H. C., VI. Part 2, 1891, pp. 93-112. Autobiography of Maj. Lawrence Taliaferro, written in 1864, M. H. C., VI. Part 2, pp. 189-255 (specially interesting, as he was Indian agent, 1819-40). [II-2] Pike's speech at this memorable conference, the treaty itself, and a long letter which Pike addressed to Wilkinson in this connection on the 23d, 24th, and 25th, formed Docs. Nos. 4 and 5 of the App. to Part 1 of the orig. ed. These are given in full beyond, Chap. V. Arts. 4, 5, and 6, where the text of the treaty is subjected to a searching criticism in the light of subsequent events. Here we may conveniently note
  • 49. the names of the chiefs concerned in the transaction. The best article I have seen upon this subject is that by Dr. Thomas Foster of Duluth, in the St. Paul Daily Democrat of May 4th, 1854, as cited by J. Fletcher Williams in Minn. Hist. Coll., I. 2d ed. 1872, p. 379; this, however, requires some additions and corrections. 1. Little Crow and Little Raven are English equivalents of Petit Corbeau, which latter is a French version of the name of the hereditary chiefs of the Kapoja band, borne by successive individuals through several generations. Pike's Little Crow is said by Long to have been son of Little Crow, who was himself son of Little Crow; and Foster identifies Pike's Little Crow "as the grandfather of the present chief, Little Crow," i. e., of one of this name who was chief in 1854, adding neatly that "he was the Great Crow of all," i. e., the most celebrated of all those who bore the name. This reference would seem to cover five generations, from Pike's Little Crow backward to his grandfather and forward to his grandson. Riggs renders Pike's Little Crow's name Chatanwakoowamani, Who-walks- pursuing-a-hawk; says that his son's name was Wamdetanka, or Big Eagle, who flourished in the thirties; and adds that the dynasty became extinct with Taoyatidoota (or Towaiotadootah), who was the Little Crow of the Sioux outbreak of 1862. He was a very black crow indeed, this last of the Corvidæ, and was killed by a Mr. Lamson in 1863. Confining attention now to the one who seems by this reckoning to have been Little Crow III. of the series I.-V., we find him tabulated by Pike as Chatewaconamini. We have already found him cited by Long as Chetanwakoamene, rendered Good Sparrow Hunter. Beltrami, II. p. 191, presents Chatewaconamani, or the Little Raven, as the chief in 1823. Featherstonhaugh
  • 50. has a chief he calls Tchaypehamonee, or Little Crow, living in 1835. Rev. Dr. Neill has in one place Chatonwahtooamany, Petit Corbeau. Dr. Foster gives the Dakota name as Tchahtanwahkoowahmane, or the Hawk that Chases Walking. Pike's Little Crow lived many years after he "touched the quill" (signed his x mark) to the cession, and was in Washington in 1824. Schoolcraft, who held a council with the Wahpeton Sioux at Fort Snelling, July 25th, 1832, says, Narr., etc., 1834, p. 146: "The aged chief Petite [sic] Corbeau uttered their reply. I recognized in this chief one of the signers of the grant of land made at this place 26 years ago, when the site of the fort was first visited by the late General Pike." The death of this good man (in 1834?) occurred from a mortal wound he accidentally inflicted upon himself in drawing his gun from a wagon, at his village of Kaposia. The circumstances are narrated with interesting particulars by General H. H. Sibley, Minn. Hist. Coll., III. 1874, pp. 251-54. 2. The chief here and consistently throughout Pike's book of 1810 called Fils de Pinchow appears in the 1807 text as Fils de Penichon, Penechon, or Pinechon; but nowhere are we told of whom this eminent individual was the son. The name seems to have been one to conjure with; and our curiosity is excited to discover Pinchow I., who was such a personage that Pike's Fils de Pinchow, or Pinchow II., needed no other title to glory. On looking up this subject, I find, first, that "Pinchow," as rendered in the above text, and the three forms given in the 1807 print, are four variants of a word which is also written Pinichon, Pinchon, Penition, Pinneshaw, etc., in French or English; and that these are corruptions of a Dakota word. Thus Beltrami, II. p. 207, introduces us to one Tacokoquipesceni, or Panisciowa, as being in 1823
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