You string has three words "why herrow there" The case when you add temp statements: 
Step first: 
token = strtok(sentence, " ");   <-- sentence: `"why\0herrow there"` 
                                 // token = sentence
char *temp;
first iteration: 
while(token != NULL)  // token is not null <-------------------------------+
{                                                                          | 
    printf("Token %d: %s\n", counter, token); // first time print why      |
                                                                           |
    token = strtok(NULL, " ");  <-- sentence: `"why\0herrow\0there"`       |//step-2
                                <-- token points to "herrow" substring  (*)|
    temp = token;               <---temp = token                           |
    temp = strtok(NULL, " ");   <---sentence: `"why\0herrow\0there"`       |//step-3
                                <-- temp = "there" sub string              |//Last token
    counter++;                             |-------------------------------+
}
second iteration of while loop: 
while(token != NULL) // token is not null, it is pointing to sustring "herrow"
{
    printf("Token %d: %s\n", counter, token); printing "herrow"
    token = strtok(NULL, " "); <-- no next token, token becomes NULL //step-4
    temp = token;    
    temp = strtok(NULL, " ");  <-- no next token, so temp becomes NULL //step-5
    counter++;
}
Third iteration token is NULL
While loop breaks!
So does it only prints: 
Token1: why
Token 2: herrow
Based on comment!  
token = strtok(sentence, " "); // first token
next_token = token;
while(next_token != NULL){
    printf("Token %d: %s\n", counter, token);
    if(next_token = strtok(NULL, " "))
           token = next_token;   //Last token in string
    // here you have last token that is not NULL 
    counter++;
}
// next_token is NULL, but token is not NULL it is equals to last token in string
counter--;
printf("Token %d: %s\n", counter, token);
Code working.