(a) On October 1, 2024, Queenie enters into a forward exchange contract to buy Japanese yen with the expectation of purchasing a factory in New Zealand. The journal entry for entering into the forward contract would be:

借：预付账款 - 远期外汇合约（¥60,000,000） 贷：银行存款 - 新西兰元（NZ$1,439,672.41）

This assumes that the contract is for NZ$1,000,000, and the forward rate is used to calculate the yen amount (¥60,000,000 = NZ$1,000,000 * ¥4.28/NZ$1).

(b) On December 31, 2024, the fair value of the forward contract has increased, resulting in a gain. The journal entry to recognize the fair value gain would be:

借：银行存款 - 新西兰元（NZ$60,000） 贷：衍生工具 - 远期外汇合约公允价值变动（NZ$60,000）

In the financial statements, the forward exchange contract would be reported as a derivative financial instrument under current assets or liabilities, reflecting its fair value at the end of the year. The related account(s) would include the derivative asset or liability and any unrealized gains or losses.

(c) On March 31, 2025, when the forward contract is settled and the factory is purchased, the journal entries would be:

Settlement of the forward contract: 借：银行存款 - 日元（¥60,000,000） 贷：预付账款 - 远期外汇合约（¥60,000,000）

Purchase of the factory: 借：固定资产 - 工厂（NZ$6,000,000） 贷：银行存款 - 新西兰元（NZ$6,000,000）

Overall change to the Factory account: The initial cost of the factory is NZ$6,000,000. There is no direct impact on the Factory account from the forward contract settlement, as the contract is settled separately and does not affect the cost of the factory. However, the net effect of the forward contract (initial cost minus gain realized) reduces the effective cost of the factory. The gain from the forward contract reduces the cash outlay, which could be seen as an indirect reduction in the cost of the factory.