Hi Torri

Our business used to accept both credit and cash payments. Now we switch to cash only.  How do you do a journal entry for cash tip collected by employee?  We used to have a tip account payable for credit card tips.  Employees report their cash tip to us and we do pay tax on cash tip. 

I read about tips in and tips out.  I set up the accounts already and have been paying them .

The problem is I set up payroll account as a separate company from main checking account.  I do a journal entry of payroll expense at the end of each month in the main checking account.  How do I do the journal entry for cash in and cash out? Thank you