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110 psi and 120 psi isn't too much of a difference in compression. I would say that your rings are fine. It is probably just wear in the engine. To make sure you can do a cylinder leak down test. All you need for this is compressed air. What you do is put a cylinder at TDC with both valves closed and put the compressed air fitting onto the spark plug. Then you listen for the air from the exhaust, carburetor, crankcase, or look for bubbles in the radiator. This will tell you where the air is going and where your leak is at. They make special tools to do this but you can also do it with your own air compressor.
I wouldn't want to begin to imagine how expensive it would be to have a shop rebuild that engine for you. I don't even think you could find anyone to do it unless you know an old timer. A rebuild kit alone for that engine is over $1000.
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