hope you like it.
The first step is to use the Rectangle Shape tool to create a shape similar to this:
Next we¡¯ll need to create 13 stripes, 7 red, 6 white. As you can see below, I just created 15 by copying and pasting, and then deleted 2 of them. Don¡¯t worry about the proportions yet, because we¡¯ll fix those in a second.

Once we have 13 stripes (for the original 13 colonies) it is now time to get them lined up in proportion to our flag. Use Edit > Free Transform to adjust the size of all the stripes at once:

Next we¡¯ll create the blue for the stars, again using the Rectangle Shape Tool:

To create the stars, let¡¯s make a new document real quick and select the Polygon Tool

We¡¯ll use the polygon tool to create an image like this:

Once that¡¯s done, enable rulers by hitting CTRL+R and then create the following guides:


We¡¯ll use the Pen Tool to create the following shape:

Once we have our shape, let¡¯s go to Edit > Define Custom Shape. Then we can use the Custom Shape tool to make the 50 stars of the flag:

Once we¡¯ve created all 50 stars, our flag should look something like this:

Now we can go one step further and add a background and a flag poll if we wish. For the sake of the tutorial I¡¯ll do that real quick. I¡¯m going to use the Edit > Transform > Warp tool to make the flag look like it¡¯s blowing in the wind.

And here¡¯s our final out come:

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