I have an accounting problem in which a list of assets and liabilities are given for 2007 and 2008. I am also given some transactions that happened toward the end of 2008involving purchasing land/building in which some is a note payable for the balance, some stock was purchased and dividends are paid per month.
I am to prepare balance sheets for the business as of December 31, 2007 and 2008.
I am also required to prepare a calculation to show net income for 2008 and compute 2008year-end debt ration for the business.

I don't know how to even get started.

Preparing the Balance Sheet for 2007 should be easy since the numbers are given to you.

Assets = Liabilities + Equity

As for 2008:
Journalize the transactions; make the adjustments to the accounts to arrive at new totals.

Then take your accounts and make the appropriate statements (For example, Sales and Expenses go to the Income Statement, Assets/Liabilities go to the Balance Sheet).