I closed the books on the first of the year, and net income was automatically moved to retained earnings as expected on the balance sheet.

It still shows a positive balance in owner's investment and negatives in each of the partner distribution accounts.  My thought process was to close these accounts out to retained earnings to get a clear view of the current year.  Are there any problems with doing this?

Just to clarify, we are a 2 person LLC filing as S-Corp.  The balance in owners investment is 50/50 start up money for the business, and the distributions taken are of equal amount taken at the same time.

Any help or thoughts on this are much appreciated!