Yay! I found the pattern for the Christmas Bell.

"
Christmas Bell" (old hand-written pattern from the 80's)
Materials: Size 9 (US) needles, Variegated Christmas yarn
Cast on 14 stitches
Row 1: Knit 10, Purl 4
Row 2: Knit
Alternate these two rows until you have the number of ridges you desire for your bell. (I knit mine for about 4 inches)
Bind off. Sew sides together & draw up top.
Make loop in top for hanging. (I made a crochet chain with the loose strand of yarn for mine, then stitched it into a tight loop at the top when I was finished.)
Turn bell inside out, and weave in any loose ends.
By the way, I just found this same pattern online!
http://www.knittingonthenet.com/patterns/holbell3.htm