This is Borrowing from the business: "the reason for the distributions is because the owner used the business credit car account for personal expenses, which thus far he has stopped."

Personally using Corporate resources = borrowed, or stealing. Take your pick. If the repayment is not Actual, then you would address it in Distribution at year end, yes, and still pro rata.

"But I'm trying to see how to classify them going backwards."

Other Asset = Loan TO shareholder.

"The expenses are on the bank feed"

Expenditure, not Expense.

"and yes I have changed the name of the chart of accounts for "shareholder" distribution."

But that wasn't what happened. The New Entity has New Equity, because the formation of the corporation entailed all sorts of things, including your other shareholder. Equity did not carry over as it was.

"Basically I am trying to determine how to properly add personal expenses to an account in quickbooks. So far I've added "shareholder distribution" and the balance sheet keeps going negative."

Because this person keep Taking and Taking.

"What account or journal entry should I do if I need to close this out? Thanks!"

On the first date of the New Fiscal Year, you offset the negative (= funds already removed from the business) with the RE (= new equity that would be provided by the prior year operations).

Run the Balance Sheet to see Total Equity. Stop worrying about negative distribution. It is always negative when there is Taking. Positive = contributions to the corporation.