I would agree, an S Corp is a pass through entity, thus there are no retained earnings. It is passed to you personally and taxable whether you take the profit out of the business or not. If it was originally a C Corp that elected S treatment I would use the shareholder equity and move retained earnings to your account based off the K1 information to track basis. This would also take into consideration reductions to basis such as 50% meals or fines disallowed. A standard LLC that elects to be taxed as an S Corp would still have partner equity accounts for bookkeeping purposes. Basis would still have to be tracked via the K1’s and moving the R/E to the appropriate members based on percentages. There is no such thing as retained earnings in a sole prop or partnership. Electing S-Corp  treatment doesn’t change that. You only have a retained earnings in a C Corp (or C Corp that elects S-Corp treatment - these retained earnings are taxed as capital gains if not passed to the member.) 

Use your K1 as a guide of your basis each year to make your R/E to equity adjusting entry. Keep in mind retained earnings is an equity account, so you’re not shifting balance, you are just adjusting the equity to the correct account/s based on percentage of ownership You are entitled to take what you have been taxed on :)