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Jenson Company Buys 20 Contracts on the Chicago Board of Trade

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Jenson Company buys 20 contracts on the Chicago Board of Trade to receive October delivery of soybeans to a certified warehouse. Each contract is in units of 3,000 bushels at a futures price of $2.75 per bushel. The owner of the contract requires a margin account with an initial margin of $8,000, with a maintenance margin of $6,000. What entry will Jenson Company make to establish the margin account? Jenson Company buys 20 contracts on the Chicago Board of Trade to receive October delivery of soybeans to a certified warehouse. Each contract is in units of 3,000 bushels at a futures price of $2.75 per bushel. The owner of the contract requires a margin account with an initial margin of $8,000, with a maintenance margin of $6,000. What entry will Jenson Company make to establish the margin account?

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