Slipcover sides of a blotter pad with terry cloth. Cut to the height of panel, plus 1-inch seam allowance, and twice the width of the side panel, plus 5 inches for hems and tuck-in at front. Make narrow hem in one end. Fold over fabric just enough for a pocket the width and height of panel, with the hemmed edge at back of blotter. Sew together top and bottom. Turn out. Hem extension of fabric, shaping at angle at top and bottom to tuck under side panels. Repeat for the other side. Make tassels of rug yarn; tie at corners.
For the bulletin board, cut fabric to width and height of board, plus 6 inches. Hem the edges. Braid yarn, sew on for border. Fold cloth over board, staple to back. Cover pencil cup, wastebasket, too.