Question

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(it или are)
Athur ... climb a big tree and his mother, Emma ... paint a picture. William ... work in the garden and the cat ... sleep. Everybody have a great time

Answer 1

Arthur is climbing a big treeand his mother Emma is painting a picture. William is working in the garden and the cat is sleeping. Everybody is having a great time. 
Только в таком виде ваше задание будет иметь смысл.

Answer 2

Athur is climbing a big tree and his mother, Emma is painting a picture. William is working in the garden and the cat is sleeping. Everybody have a great time
Present Continuous употреблен