Squidward chews some chewing gum and throws the wrapper away. SpongeBob notices that Squidward did this and goes to see if he wants it back.
SpongeBob keeps bugging Squidward about it. Squidward tells him to promise him that "no matter how much I plead, beg, or cry, don't give that paper back to me, ever!" and SpongeBob agrees to confirm his promise. As Squidward is about to play "Mary Had a Little Lamb" on his clarinet, SpongeBob laughs about all the fun he can have with the paper.
Squidward laughs and enjoys his own time reading a Boring Science magazine, taking a bath, and painting fruit. While painting, Squidward accidentally paints himself having fun with the piece of paper. When he breaks it, the Squidward painting's mouth is open and invisibly cries by his death. Squidward tries to get the paper back, but SpongeBob keeps his promise and says he will not return it. Squidward trades everything he owns back, and finally his own t-shirt to SpongeBob, who cannot help having Squidward's t-shirt, and he decides to renege on his promise. Squidward tries to have fun with the paper but cannot. He traded everything he had for the worthless piece of paper for nothing. Soon Patrick takes the paper from Squidward and uses it to put his gum on it and throw it in the trash, then Patrick comes over to SpongeBob's to play. It is most likely that out of kindness SpongeBob gave Squidward his things back.
Characters who used Mr. Paper
Squidward - Throws it on SpongeBob's lawn. He later tries to play with it, thinking his opinion on it could change, but he does not find it amusing
SpongeBob - Plays with it and later gives it to Squidward for his shirt and everything else he owns.
Patrick - Takes it from Squidward, then throws it away after putting his chewing gum on it.