Jenson Company Buys 20 Contracts on the Chicago Board of Trade

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?

A) A memo entry to record acquisition of the contract which has no value at inception.
B) $\begin{array}{llr} \text { Futures contract - margin account } &6,000\\ \text { Cash } &&6,000\\\end{array}$


C) $\begin{array}{ll}\text { Futures contract - margin account } & 8,000 \\\text { Cash } && 8,000\end{array}$

D) $\begin{array}{ll}\text { Futures contract - margin account } & 165,000 \\\text { Cash } && 165,000\end{array}$