LLC taxed as a C corporation - Money withdrawn from business during the year. How is this filed on their Corporate 1120 and personal return?

[TBMS]

I have a client that is a LLC taxed as a C corporation.  They have taken out payments to themselves in the course of a year. Their accountant recorded the payments as an expense. How is this filed on their personal tax return and on the corporate return? 

Should this be a loan/distribution/dividend? 

The payments to them for 2018 and 2017 is causing negative equity as well on their financials. 

[IRonMaN · Accepted solution]

If payments were taken out and recorded as an expense, there should have been some W-2s prepared.