I am glad I could help. I am not the author of this guide - the credits goes to
https://www.reddit.com/user/liriliWhen you chop the Wood Log with Axe you get both 2x Branch and 1x Wood Chips. Look up your inventory.
Wood Log + Axe = 2x Branch AND 1x Wood Chips
Wood Chips + Water Barrel / Bucket of Water / Well = Mush of Wood
Mush of Wood + Oven / Furnace = Sheet of Paper