In an s-corp there are no owner equity accounts, you have shareholder capital and additional shareholder paid-in capital accounts.

Those capital accounts can not be used the same way equity accounts are used in a sole proprietor or partnership.  In a corporation, as a working shareholder you are required to be on payroll - are you?

A corporation, even with a sole shareholder is required to have a written shareholder meeting at least annually (some states make that more often) in that meeting you vote on whether or not to issue dividends or distributions to the shareholders.  Dividends and distributions are handled differently for tax purposes, and shareholder capital.

Retained earnings is what is used to "pay" dividends and distributions, the remainder stays in the corp.

I think you need to sit down with a tax accountant and verify or get things correct