On July 1, 2017, Carla Vista Co. pays $ 21,500 to Sandhill Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31.

For Carla Vista Co., journalize the entry on July 1 and adjusting entry on December 31. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

For Carla Vista Co., post the entries passed on July 1 and December 31. (Post entries in the order of journal entries presented in the previous part.)