On August 9, Jacobs Company Buys 25 Contracts on Nymex $$\begin{array} { r r r } \text { Aug. } 9 & \text { Aug. } 10 & \text { Aug. } 11 \\\$ 24.85 & \$ 24.63 & \$ 24.56\end{array}$$

Essay

On August 9, Jacobs Company buys 25 contracts on Nymex to receive December delivery of Brent Crude Oil.Each contract is in units of 1,000 bbls at a futures price of $24.85 per bbl.The initial margin on the contract is set at $25,000, with a maintenance margin of $19,000.The futures prices are as follows:
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$$\begin{array} { r r r } \text { Aug. } 9 & \text { Aug. } 10 & \text { Aug. } 11 \\\$ 24.85 & \$ 24.63 & \$ 24.56\end{array}$$ Required:
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a.Journalize the entries for Jacobs Company for the first three days of the contract.?
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b.Why are forward prices discounted and future prices are not discounted?