When you spend funds as Distribution, that reduces Equity. The QB function for having more than one Equity Type account means you are posting these to "Owner" equity, but in an S Corp, that would be Shareholder Distribution. Then, for the first date of the next year, you will need to offset total Distribution to "real" equity = Retained Earnings.

Meanwhile, in your Bal Sheet reporting, you also see that Net Income from the P&L for that year is part of Equity. For the first date of their new year, this amount is seen in Retained Earnings, but is not a real entry and you don't make it.

And if you open that Chart of Accounts and double-click each Equity Type account, the one opening as a Report, not as a Register (and has no register) is Retained Earnings, no matter what it got named. So, if you did not start a new file, your Owner Equity account is named incorrectly. You would have started a new file for the S Corp.