How to record tips

[Floyd Hagen]

Howdy,

Could someone tell me how to properly record tip money in the US? My
wife makes tips where she works, and this is new to me.

It looks like they tax her tips in her paychecks, but subtract that
amount out from the net pay, since she already got it.

I've set up a Income:Wife Salary:Tips account.  I did a split
transaction in our Assets:Checking account and part of that was a
deposit to Income:Wife Salary:Tips. The Assets:Checking account
balances out, but the Income:Wife Salary:Tips account shows a negative balance.

We use the tip money as spending cash, so I guess I need to somehow
record the tips as income as well as an asset, and somehow get the
checking deposit to balance out. Right?? How do I link 3 accounts?

Thanks.