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 $988,650. Worcester's borrowing rate for similar transactions is 10%. The lease agreement specified four annual payments of $208,000 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 10% is $725,265. 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 9%. (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.

- Record the modification of the lease for Worcester. 2. Prepare all appropriate entries for Newton LeaseCorp on January 1, 2023, to record the lease modification.

- Record the modification of the lease for Newton 3. Prepare all appropriate entries for Worcester Construction on December 31, 2023, related to the lease.

- Record the lease payment and interest for Worcester.

- Record the amortization of right-of-use equipment for Worcester. 4. Prepare all appropriate entries for Newton LeaseCorp on December 31, 2023, related to the lease.

- Record the lease payment received by Newton