Read on for a step by step tutorial.
2 - Cut the following pieces
17" x 17" - 2 pieces (bag front & back)
30" x 3" - 2 pieces (frill - try to cut one of the long edges of each piece on the selvedge)
23" x 3" - 2 pieces (handles)
17" x 3" - 2 pieces (bag top)
3 - To make the enclosed French seams: place the bag front and back pieces wrong sides together (yes, wrong sides together) sew a small seam down the side, along the bottom and up the other side.
4 - Trim the corners to remove some of the fabric bulk.
6 - To make the flat bottom of the bag, keep the right sides together. Flatten the bag so the side seam is on top of bottom seam, and the bottom corner point has become the top of the triangle shown above. Mark 1 1/2 inches down from the point and draw a line across at 90 degrees to the seam. Sew along the line.
7 - Turn the bag right sides out and press the seams.
8 - To make the frill - If you cut the frill on the selvedge you won't need to hem it, if you didn't then create a small hem along one of the long edges. Also hem each short side edge. Repeat for the second frill piece.