Owner's draw - 1120S, Sch. L, line 25; or, Sch. K-1, line 16D

Example,

 

S-Corporation has 2 officers, each 50% owners.  Both are paid as W-2 employees.  In addition to their salary, QBO reports distribution of owner's capital ~$60k. 

 

Should this be reported on 1120S, Sch. L, line 25, in the balance sheet section?

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Should this be reported on Sch. K-1, line 16?

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