Frosty Incorporated has the following balances on December $31$ prior to closing entries:$$

Revenues $$41900$

Retained Earnings, January $18,000$

Cash $8500$

Expenses $23200$

Accounts Payable $2600$

Dividends $2200$

Supplies $18600$

Based upon the balances above, how will Retained Earnings change as a result of the closin entries?

$$Increase of $$16,500$

$$Increase of $$18,500$

$$Increase of $$17,500$

$$Increase of $$19,500$