Squidward chews some chewing gum and throws the wrapper away. SpongeBob notices that Squidward did this and goes to see if Squidward wants it back.
SpongeBob keeps bugging Squidward about it. Squidward tells SpongeBob 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.
Those who used Mr. Paper
Squidward - Threw it on SpongeBob's lawn.
SpongeBob - Played with it and later gave it to Squidward for his shirt and everything else he owned.
Squidward again - Tried to play with it, but he did not find it amusing.
Patrick - Took it from Squidward, then threw it away after putting his chewing gum on it.