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

[ac-control]

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?

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

[Mike9241]

these are better referred to as "distributions". the amount distributed to each shareholder needs to be reported on each of their k-1s line 16D and should also show up in schedule M-2 column a line 7 and also be a reduction of retained earnings schedule L column d line 24.