Nobody has ever been able to prove or disprove the story – but we all know the legend of Philadelphia seamstress Betsy Ross.  History says George Washington asked her to create a new American flag after the Continental Congress directed that it should be made of 13 alternating red and white stripes with 13 white stars in a field of blue.

The first appearance of that new American flag came during a  Revolutionary War skirmish at Cooch's Bridge, Maryland in 1777.  General William Maxwell ordered the stars and strips raised as   his infantry and cavalry met an advance guard of British troops.  That battle didn’t go so well for the American troops.  They were defeated and forced to retreat to Pennsylvania. 

The flag continued to change with each additional state added to the union.  At first, they added a new stripe for each new state, but then decided it should be limited to those original 13 states and a star be added for all additional states.

SOURCE: sonofthesouth.net