This achievement is only possible AFTER you have freed Bonnie from the arcade machine (The first time you do this you will get the achievement Paranormal Inactivity).
Go to the game's main menu showing the continue, new game and help&tips prompts.
Go down to help and tips and go right, if done correctly you should be highlighting the Axe that has appeared on the tree stump.
Interact with the Axe a few times, if done correctly the Axe will disappear and a sound affect will play, you will also be put back to selecting the Continue prompt.