S-Corp Year End Closing Journal Entries

I want to make sure I close my equity accounts correctly at the end of each year. I'm the sole owner of my s-corp. I have three equity accounts: Beginning
Equity(BE), Contributions & Distributions. There's also Retained Earnings.
Using my 12/31 balance sheet, I make the following journal entries (dated 1/1):
1. retained earnings: a. if net income: debit RE, credit BE b. if net loss: credit RE, debit BE
2. distributions: credit Distributions, debit BE
3. contributions: debit Contributions, credit BE
Is the above correct?
Am I correct to assume the BE account identifies my basis in the company?
If so, it raises a few other questions
a. Provided distributions are not in excess of my basis, it is considered a return of capital and not taxable. Correct?
b. When distributions exceed my basis, this becomes taxable. where I'm confused is how the income is reported. is it K1 line 16d ----> Sch E? Or is it a cap gain? And if so, what line is this reported on the K1 and do I then report it on Sch D?
I feel like i'm 90% there and the last 10% of enlightenment is driving me NUTSO!
Mucho thanks in advance.
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