balance sheet *always* shows Unrealized Loss of 639.96

[David J. Heinrich]

I've figured out the problem with GnuCash and the price-editor,
regarding accounting for unrealized capital gains. 

All that you do is figure out how much the stock price increased (or
decreased) and make an appropriate entry of a CREDIT from a Gains \
Capital Gains \ Unrealized to a DEBIT in Assets \ Long Term \ ABC for
the amount that you calculated you gained in unreal. capital gains (EB -
BB - Contribs - Div. Reinvestments). 

So, now when I do an account summary, things balance out. However, when
I show a BALANCE SHEET, it *always* shows an "Unrealized Gains (Losses)"
of -639.96 under Liabilities. This makes no sense, since my ACCOUNT
SUMMARY shows everything balancing out. 

The fundamental identiy of accounting is:

Assets = Liabilities + Equity + Income - Expenses + Gains - Losses

As you can see from my Account Summary on 12/31/1996, this identity
holds:

ACCOUNT SUMMARY on 12/31/1996
---------------------------------------
Account name                    Balance
Assets
    Assets           $8,472.63
Total Assets                  $8,472.63
Liabilities
    Liabilities          $0.00
Total Liabilities                 $0.00
Equities
    Equity           $6,136.77
Total Equities                $6,136.77
Income
    Gain             $2,335.86
    Income               $0.00
Total Income                  $2,335.86
Expenses
    Expenses             $0.00
    Loss                 $0.00
Total Expenses                    $0.00
---------------------------------------
Total                         $2,335.86

$8,472.63 = $0.00 + $6,136.77 + $0.00 - $0.00 + $2,335.86 - $0.00
$8,472.63 = $6,136.77 + $2,335.86
$8,472.63 = $6,136.77 + $2,335.86

For my Balance Sheet on 12/31/1996, the equation holds, if you DON'T
consider "Unrealized Gains (Losses)":

BALANCE SHEET on 12/31/1996
---------------------------------------
Assets
Assets                        $8,472.63
Assets                        $8,472.63
---------------------------------------
Liabilities
Liabilities                       $0.00
Liabilities                       $0.00
Unrealized Gains (Losses)      -$639.96
---------------------------------------
Equity
Equity                        $6,136.77
Net Profit                    $2,335.86
Total Equity                  $8,472.63
---------------------------------------
Liabilities & Equity          $7,832.67

$8,472.63 = $0.00 + $6,136.77 + $0.00 - $0.00 + $2,335.86 - $0.00
$8,472.63 = $6,136.77 + $2,335.86
$8,472.63 = $6,136.77 + $2,335.86

However, when you factor in "Unrealized Gains (Losses)", it becomes

$8,472.63 = $0.00 + $6,136.77 + $0.00 - $0.00 + $2,335.86 - $639.96
$8,472.63 = $6,136.77 + $2,335.86 - 639.96
??$8,472.63 = $7,832.67 ??

*What* is this "Unrealized Gains (Losses)" junk doing there? *Exactly*
the same amount appears on *all* of my GnuCash balance sheets for every
year I select. I don't have any "Unrealized Gains (Losses)" account in
my GnuCash hierarchy. 

Help?