A compound sentence contains two independent clauses joined by a coordinating conjunction like for, and, nor, but, or, yet, or so. Examples are provided of compound sentences where the subjects are highlighted in yellow, verbs in green, and clue words/commas in blue. These examples show one sentence where a subject handed in homework but forgot the last page, and another where two subjects finished studying and then went to the movies. The document also notes that the red clauses are dependent and black clauses are independent.