[GNC] Currency Transfers result in Unrealized Gain (or Loss)

[Norm Samuelson]

I wrote about this recently, and did not get a good explanation. So I 
created a bare-bones demo of what I am trying to understand.

I created two checking accounts, one in CAD and one in USD.  USD is my 
normal currency.

I deposited $60,000 into the CAD account.

I transferred $20,000 CAD to the USD account, with an exchange rate of 
1CAD to .75USD. resulting in $15,000 USD.

Later I transferred another $20,000 CAD to the USD account, with an 
exchange rate of 1CAD to .74USD. resulting in $14,800 USD.

That left me with $20,000 CAD and $29,800 USD.

The Balance Sheet shows Unrealized Gains of $200 USD.

I have to assume that the "Unrealized Gain" came because of the change 
in the exchange rate.  The first transfer gave me $200 more than the 
second.  So I gained money on the first transfer by doing it at a better 
exchange rate???  (But I did not "realize" it???)

I wind up with Total Assets of $44,600 (the $29,800USD plus the 
$20,000CAD which is now worth $14,000 at the new exchange rate).

Retained Earnings is $45,000 (the initial $60,000 at the early exchange 
rate).

Unrealized Gains is $200

Total Equity is $45,200.  I do NOT understand that, as I do not have 
over $45,000 now, but under $45,000.

I do not have a degree in Accounting.  I simply do not understand how 
the Equity figures are calculated.

I am willing to send the .gnucash file and the balance sheet to anyone 
who can help me understand this.  I would like to learn.

-- 
- Norm -