Smith & Sons, Inc., is authorized to issue one million shares of $1 par value common stock. in the company's initial public offering, 500,000 shares are sold to the investing public at a price of $5 per share. One month following Smith & Sons initial public offering, 1,000 of its common shares were sold by one investor to another at a price of $10 per share. How should this transaction be recorded in the accounts of Smith & Sons? Why?