Recording Owner's Draw or "Taking Profits"

I need to understand how in QB you properly record an Owner's Draw or Take a Profit from year-to-year. First let me note that my QB is set up for the Consulting Services industry. This is what I do now:I have an equity account set up called "Owner's Draw Account". I take a draw by creating a check that comes from an account called "Bank Account" which is of type "bank". The check is made out to me, the owner and the expense account that I select on the details of the check is "Owner's Draw Account". The amount in this example is $1000.I observe the following in QB. The "Bank Account" records the transaction by subtracting $1000 from the account. The "Owner's Draw Account" ledger shows a "decrease" of $1000 and the balance becomes "-$1000".Now, when I generate a Balance Sheet for the year ending December 31. Equity shows that the Owner's Draw Account is -$1000. Net Income is listed as $1000 and Retained Earning is listed as $0. Total Equity thus becomes $0 ($1000 - $1000 = $0).Everything appears to be fine thus far (I think). Now, let say that the above example was for the previous year and now for the current year I want to take a draw of $500.I write another check in the amount of $500 using the approach above. So when I generate a Balance Sheet for the current year Equity shows the the Owner's Draw Account is -$1500 (-$1000 - $500). Net Income is listed as $500 and Retained Earning is listed as $1000. Total Equity thus becomes $0 ($1000 + $500 - $1500) for the current year.HERE IS MY QUESTION:Something seems amiss here. For the current year the Owner's Draw shows -$1500 reflecting two years of draws. Is there something else I need to do (perhaps a journal entry of some sort) to make sure the Balance Sheet starts off with $0 at the beginning of the current year? Total Owner's Draws for the current year are $500 after all.Retained Earning show $1000 reflecting a $1000 Owner's Draw from the previous year. I would think that this should have been $0 retained in the company. I seem to be having an aculation of both Owner's Draws and Retained Earnings from year-to-year.Lastly, my company earns interest on its checking account. Since this is an S-corp interest is not to be reported as income rather it goes to my personal 1040 as interest income. Similarly, I've invested company money in the stock market and generate short term capital gains. I assume that I should do an Owner's Draw to take the this generated "income" out of the S-corp so that the personal 1040 reports it???