Shih Tzus

I just became the owner of a 1yr 10 month old shih tzu, the previous owners had him house trained to their basement. I live in the city in a apartment, and started right away training him to paper in the house, and my husband will walk him twice a day, early morning and in the evening. It's going on the third week and he still will pee on the carpet, and have also pooped on the carpet too!! and we would tell him NO! and shake a can of beans by his ears, and he did then stop on the carpet, and then started right back doing it again! the dog was for our 19yr old daughter, but if we can't get this together he has to go!! we are not use to this and for one our cat usues the litter box, so this is a big adjustment for us, Please help, before we ship him out we are willing to try anything!!!