Stock acct value on balance sheet

[Neil Carlson]

Either I'm confused about how a balance sheet ought to be calculated
(quite possible), or there is a bug in the balance sheet report.

Here's a scenario (gnucash-1.8.8):

Shares	Price	Buy	Sell	$Value1
100	10     1000		1000
-10	10		100	 900
 12.5	 8      100		1004.08

$Value1 = balance sheet with 'weighted average' price source
How is this value being computed?  The balance sheet shows an
unrealized gain of 0.  Somewhere $4.08 magically appeared,
unbalancing the balance sheet.  I don't know what 'weighted
average'  is intended to mean, but shouldn't there be one option
that uses buy-$ minus sell-$ as the 'value'?

If I set a recent price for the  stock to $11, and use 'most
recent' for the price source in the BS options, I get a value
of 1127.50, which is correct, but an unrealized gain of 123.42;
shouldn't this be 127.50?

Am I confused, or is this a bug I ought to report?

Cheers,
  Neil

-- 
Neil Carlson <nnc at newmexico.com>