TurboTax S-Corp does not substract Shareholder Distribution when the Retained Earning is negative

Just for clarification, I am not withdrawing more than the stock basis. My stock basis is $20k so the $2k distribution is just a return of capital. 

With negative RE you've either loaned $$ to your corp or you have a cap gain because the distribution is more than your basis.

I am confused. Please help me understand. I made no loan to the S Corp. I initially invested $20k as capital contribution to the S Corp. This year (the first year) has a loss of $12k. Later in the year I took $2k distribution as return of initial capital.

So the regained earning is negative $12k, right?

RE is a negative $14k because you have a $12k loss plus a $2k distribution. You invested $20k so your cash needs to go down.....credit decreases assets........by $14k in order to balance,