Sentence 1: They were out in the backyard. 
 Sentence 3: They were all fascinated by it 
 Sentence 4:  Gazing through the lens they were looking at the moon 
 Sentence 5:  It was beautiful and the whole family enjoyed it 
 Option 1: The Phillips family had just purchased a new car. 
 Option 2: The Phillips family had just purchased a telescope.