Unearned sales rev of 975 is still unearned at dec 31. On the sales that was earned , cost of sales was 2000.
What is the journal entries that I make.

You will credit $975 to Unearned Revenue, which is a current liability account. The debit depends on whether other entries have already been made. Is there more info about this transaction? For example, if cash is received for this and hasn't been recorded, your debit would be to Cash. It could be that the $975 is currently in Revenue and therefore you need to debit Revenue. If the $975 is already in Unearned Revenue, no entry is needed.

Cost of sales is another way to say Cost of Goods Sold. I am assuming that the $2,000 is currently sitting in Inventory, as costs are charged to Inventory until the goods are sold. Your entry would be a debit to Cost of Goods Sold (or Cost of Sales) and a credit to Inventory.

My balance sheet is out by 2000. My total assets in 2000 less then the liabilities. I assumed that this 2000 has something to do with it. It must be the way I'm entering the info on the income statement.
Merchandise inventory. $27,050
Cost of goods sold $ 171,225.
My adjusting entries are wrong.

Assets = Liabilities + Owners Equity

When you make the entry to decrease Inventory by $2000, you also increase your Costs of Good Sold by $2000 which decreases net income (so decreases equity). While assets decrease by $2000, so does equity.

What did you use for adjusting entries?

I recorded
Cost of goods 2000
And inventory 2000

Your entry is fine. Did you carry the change in the Income Statement over to your Equity section of the Balance Sheet?

I feel I've put in the correct info but I can't find the 2000. Difference. The next question is "after a physical inventory count my inventory balance is 23,000. 2000 more then what the recorded info is. That is 2000 difference. But that would give a 2000 debt to the inventory account and 2000 credit to the cost of goods account. And it would still make no differnce on the balance sheet.

If you started with balanced statements and a balanced trial balance, then made equal debits and credits, your Balance Sheet should be in balance. If you can give me a link to your work I can check it. If not, there has to be a problem with the numbers you are picking up. The most obvious thing to me is that the Equity part needs to be checked.