3 On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton LeaseCorp. Newton LeaseCorp purchased the equipment from Wellesley Harvester at a cost of $1,010,826. Worcester's borrowing rate for similar transactions is 12%. 2 points The lease agreement specified four annual payments of $194,000 beginning January 1, 2021, the beginning of the lease, and on each December 31 thereafter through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 12% is $659,955. On January 1, 2023 (after two years and three payments), Worcester and Newton agreed to extend the lease term by two years. The market rate of interest at that time was 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for Worcester Construction on January 1, 2023, to adjust its lease liability for the lease modification. 2. Prepare all appropriate entries for Newton LeaseCorp on January 1, 2023, to record the lease modification. 3. Prepare all appropriate entries for Worcester Construction on December 31, 2023, related to the lease. 4. Prepare all appropriate entries for Newton LeaseCorp on December 31, 2023, related to the lease. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare all appropriate entries for Newton LeaseCorp on January 1, 2023, to record the lease modification. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) No Debit Credit 1 Date General Journal January 01, 2023 Lease receivable Accumulated depreciation Cost of goods sold Sales revenue Equipment 408.670 X 336.942 673,884 408,670 X 1,010,826 3 On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton Lease Corp. Newton LeaseCorp purchased the equipment from Wellesley Harvester at a cost of $1,010,826. Worcester's borrowing rate for similar transactions is 12%. 2 points The lease agreement specified four annual payments of $194,000 beginning January 1, 2021, the beginning of the lease, and on each December 31 thereafter through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 12% is $659,955. On January 1, 2023 (after two years and three payments), Worcester and Newton agreed to extend the lease term by two years. The market rate of interest at that time was 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for Worcester Construction on January 1, 2023, to adjust its lease liability for the lease modification. 2. Prepare all appropriate entries for Newton LeaseCorp on January 1, 2023, to record the lease modification. 3. Prepare all appropriate entries for Worcester Construction on December 31, 2023, related to the lease. 4. Prepare all appropriate entries for Newton LeaseCorp on December 31, 2023, related to the lease. X Answer is not complete. Complete this question by entering your answers in the tabs below. quired Required 2 Required 3 Required 4 Prepare all appropriate entries for Worcester Construction on December 31, 2023, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar) No General Journal Debit Credit 1 Date December 31, 202 Interest expense Lease payable Cash 2 December 31, 202 Amortization expense Right-of-use asset OO 3 On January 1, 2021, Worcester Construction leased International Harvester equipment from Newton LeaseCorp. Newton LeaseCorp purchased the equipment from Wellesley Harvester at a cost of $1,010,826. Worcester's borrowing rate for similar transactions is 12%. 2 points The lease agreement specified four annual payments of $194,000 beginning January 1, 2021, the beginning of the lease, and on each December 31 thereafter through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 12% is $659,955. On January 1, 2023 (after two years and three payments), Worcester and Newton agreed to extend the lease term by two years. The market rate of interest at that time was 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the appropriate entries for Worcester Construction on January 1, 2023, to adjust its lease liability for the lease modification. 2. Prepare all appropriate entries for Newton LeaseCorp on January 1, 2023, to record the lease modification. 3. Prepare all appropriate entries for Worcester Construction on December 31, 2023, related to the lease. 4. Prepare all appropriate entries for Newton LeaseCorp on December 31, 2023, related to the lease. > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare all appropriate entries for Newton Lease Corp on December 31, 2023, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answers to nearest whole dollar.) No Date General Journal Debit Credit 1 December 31, 202 Cash Interest revenue Lease receivable