Frosty Inc A)Increase of $11,000

Multiple Choice

Frosty Inc.has the following balances on December 31 prior to closing entries: Based upon the balances above,what net adjustment would be made to Retained Earnings due to closing entries?
$$\begin{array} { | l | r | } \hline \text { Revenues } & \$ 36,000 \\\hline \text { Retained Earnings, Jan. } 1 & 10,000 \\\hline \text { Cash } & 7,000 \\\hline \text { Expenses } & 23,000 \\\text { Accounts Payable } & 4,000 \\\hline \text { Dividends } & 1,000 \\\hline \text { Supplies } & 18,000 \\\hline\end{array}$$

A) Increase of $11,000.
B) Increase of $13,000.
C) Increase of $12,000.