Yes, the ordinary income from Schedule K-1 is what is reported on your personal return. You'd also report any investment income (interest, dividends, capital gains/losses), net rental income, royalties, charitable contributions, and other items from your Schedule K-1, if any of the items are present. These other items are income and expense items from your business that are not included in ordinary income because they may have different tax treatment among different shareholders.
Yes, your Schedule M-2 should show your distributions. To reflect your distributions, you could amend your prior year 1120s to update the M-2 or you can make an adjustment to the beginning balance on the current year M-2. If you make the adjustment on the current year form, make sure you keep records of the calculation of the adjustment in case the IRS asks about it.
