Please focus on the missing answers (the red boxes).

On July 1,2017 , Sandhill Co. pays $16,500 to Pharoah Company for a 1 -year insurance contract. Both companies have fiscal years ending December 31. (a) Your answer is correct. For Sandhill 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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) For Sandhill Co., post the entries passed on July 1 and December 31. (Post entries in the order of journal entries presented in the previous part.)