Adding one is a common operation in binary. It is pretty simple but you must be aware of how to carry bits. It is also a good way to introduce full addition in binary.
Let look at an example:
That was pretty simple and this is how it will work any time the binary number ends in 0.
What if it ends with 1?
In binary 1+1 = 0 and a carry, so what we did was this:
What if they are all 1?
This is called an integer overflow. We carried the 1 all the way across and it was thrown out at the end changing everything back to 0. This is why integer overflows cause numbers to wrap back around.
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