Question

how did the change in the journal entries effect the net income of the company at the end year

Answer 1

Net Income is the result of deducting the total expenses from the total revenues so when journal entries are prepared to increase the revenue, the net income will be effected or journal entries are prepared to decrease the expenses, the net income is effected and the same applies vice versa.

To increase the revenues, journal entries should be prepared by crediting the revenues because revenues will always has credit balance so credit increases the revenues.

To increase the expenses, journal entries should be prepared by debiting the expenses because expenses will always had debit balance so debit increases the expenses.

An example to increase the revenues and to increase the expenses are shown below -

Account Titles and Explanation	Debit	Credit
Accounts Receivable	XXX
Sales Revenue		XXX
(To record the sales made on account)
Account Titles and Explanation	Debit	Credit
Salaries Expenses	XXX
Salaries Payable		XXX
(To record the salaries expense incurred)