At the Cleavers' house one morning, June gets all dressed up and Wallie and Beaver want to know where she's going in her fancy hat. She informs them that she's going to a luncheon at the school to discuss a family night being hosted there by parents once a month. Beaver makes June promise not to ask his teacher any embarassing questions about him, or tell her anything that would humiliate him. June agrees.
After the luncheon, Beaver's teacher confides to June that Beaver is doing exceptionally well in his classes. June remarks what a nice group Miss Landers has that year. Miss Landers agrees, and then goes on to explain that the only damper on everything is the fact that some items have been mysteriously disappearing from lockers, including a cap, a baseball mitt, and a lunchbox.
That afternoon, while June is vacuuming the boys' room, she discovers under Beaver's bed the very same items that Miss Landers mentioned being missing. Upset, she calls Ward at the office and urges him to come home early.
When Beaver comes home from school, June questions him about taking the things, and he denies doing it. June reminds him that God is watching everything he does, and Beaver says he would never do anything to hurt God like that.
When Ward gets home, he questions Beaver in the den. Beaver explains that a kid at school gave him all these things. Ward decides to take Beaver to the boy's house and discuss it with him and his father.
At Kenneth's house, Ward explains the situation to Kenneth's father, Mr. Purcell. Kenneth denies Beaver's claim, which infuriates Beaver. Mr. Purcell takes his son's side, and a disappointed Ward leaves with Beaver. Beaver asks Ward if he believes he's telling the truth, and Ward affirms that he does.
At school the next day, Kenneth tries to smooth things over with Beaver, who wants none of it. Kenneth protests that he had to lie because his father, mother, and even his sister would have hollered at him for doing such things. Beaver is unsympathetic until Kenneth agrees to tell Miss Landers.
A concerned Miss Landers explains to Kenneth that he must never do such a thing again, and he promises never to do it in a "hundred million years." She tells him that she is his friend as well, and offers to break the news gently to his father, and to the principal. Kenneth agrees to return the stolen goods immediately.
In the closing scene, June and Ward both admit to one another goofy things that they did in school to be popular. June pretended to be the niece of a celebrity in boarding school, and Ward signed an autograph himself of a famous ball player.