Creating the sign:

Open a new image 500 x 500 transparent. We will crop the image at the end but its always good to have space to work.

Add a new layer. Chose the selection tool - rectangle. Draw a largish rectangle and fill with your favorite wood pattern.

Select none (Selections/none) Change the selection tool to ellipse then add a new layer Create a fairly plump horizontal ellipse the same width as the rectangle. If its not exact dont worry we are going to resize it in a minute. Fill with the same wood pattern.

Move the ellipse layer below the rectangle layer.

Using the deform tool - resize the elipse so that it is the same width as the rectangle. Position the ellipse so that the rectangle covers the bottom half then make layer 1 invisible and merge visible layers.

You can leave layer 1 invisible till the end of the tutorial.

Use the selection tool - rectangle to draw around your sign then click on it to select the sign Go to effects, inner bevel and use the settings for angled bevel using light angle 261.

While still selected go to inner bevel again and use the settings for frame bevel.