@tj1701 

Just saw this and must disagree. No need to distort your Retained Earnings account. I have been an S-Corp single-owner for over a decade. I keep Retained Earnings in that account with a cumulative credit total balance which shows how much money my company has earned since I started biz 12 years ago.

I have a separate Distributions account with a debit balance which show the cumulative balance of total amounts I have distributed to myself in the last 12 years, which I record when I pay myself with cash or

if I pay personal expense with company credit card, which ultimately is DR Distributions and CR Cash.

This allows me to see:

Retained Earnings ($5,000,000)   Taxed as earned each year for last 12 years

SH Distributions          $500,000   Cash Paid to Me (not taxed since already taxed above as earned 

Net Equity               ($4,450,000)   Amount available for me to take anytime since already taxed above