Could you Please help me punctuate this paragraph.

on his way home from school tom found a bag on the ground is this bag yours he asked tara no its not my bag I left mine at school I think it might be emma's bag because hers is blue and green tom laughed and said you may be right she is always losing her things the two children picked up the bag and continued on their way

5 answers

We will be happy to critique (look that word up in a dictionary) your work. Repost it with your attempt to punctuate.
On his way home from school, Tom found a bag on the ground.
"Is this yours?" he asked Tara.
"No, it's not my bag! I left mine at school. I think it might be Emma's bag, because hers is blue and green."
Tom laughed and said,
"You may be right, she is always losing her things."
The two children picked up the bag and continued on their way.
Is this puncuated correctly
On his way home from school, Tom found a bag on the ground.
"Is this yours?" he asked Tara.
"No, it's not my bag! I left mine at school. I think it might be Emma's bag, because hers is blue and green."
Tom laughed and said, "You may be right, she is always losing her things."
The two children picked up the bag and continued on their way.

It looks exactly right. The only change I made was to move the underlined part so that it comes immediately after "said," in that line.

Questions?

One small correction. Between "right" and "she" should be a semi-colon. You are joining two complete sentences. Therefore, a comma won't do the job.