Kellner Company is a phone accessories manufacturer and its sales have declined in recent years. The company wants to start production on a new line of phone accessories that they believe are about to hit the market, and they want to beat the competition. The CEO has been reaching out to a bank for a loan, and he was told that the bank would put their loan application on the fast track if they could complete their financial statements by 9:00 am the next morning. Melissa Ray, Controller, has just started the year-end financial statement closing process and has just prepared the unadjusted trial balance. The CEO is very anxious to take advantage of the banks offer and has asked her to prepare the financial statements from the unadjusted trial balance by the end of the day. Melissa stated that she needs to do the adjusting entries, however, the CEO told her to skip doing the adjustments because it will take too long. What should Melissa do? Should she skip the adjusting entries and just prepare the financial statements from the unadjusted trial balance? If not why not? Why are the adjusting entries necessary? What accounting principles are involved and why are adjusting entries required in the preparation of financial statements?