Prepare journal entries for the following related transactions in the Water Department Fund:

1. Issued $5,000,000, 4 percent bonds for $5,050,000 to finance improvements to the water plant

2. Transferred $800,000 to the general fund in lieu of property tax payments.

3. Sold used equipment for $6,000 at auction. The original cost was $70,000 and accumulated depreciation was $63,000.

4. Received a vendor invoice for $75,000 for new equipment purchased.

5. Billed water customers $420,000.