Using a brush, paint a light coat of Mod Podge onto your fabric. Allow to dry. This will allow you to cut the fabric like paper without frayed edges.
Paint your wood piece in the colors of your choice. Allow to dry.
Seal the wood piece with Mod Podge and let dry.
Time to attach the fabric to the canvas. I used a staple gun, starting on one edge and stretching the fabric across. My method was bottom, top, then sides. I finished at a corner.
Tuck the corner, trim, and staple. I made "flower" like corners - tucking the two parts under on each side and then folding down. Repeat with the remaining corners.
Use your glue to glue your embellishment onto the canvas. Let dry for several hours before hanging.