My sole-owned LLC owns a part of an LLC which has three members. How do I set this up?

Thanks in advance for any help on this issue!

I own a sole-owned LLC that I file on my Schedule C. My LLC also owns 35% of another LLC from which I get K-1s. I set up this outside LLC with "Other Asset", and created three sub-accounts: Contributions, Distributions, and Retained Earnings. I also have set up an "Other Income K-1" and "Other Expense K-1" to capture the annual P&L results.

My initial contribution is under the "Other Asset: Contributions". My annual distributions are entered under "Other Asset: Distributions." I tried entering the K-1 profit/loss in "Other Asset: RE" with the offset to K-1 Profit/Loss. But I'm not confident this is correct. How do I clear distributions with an entry? How do I enter profits/losses from the K-1?