How do I make a circular image of a square image?

[ShinehahGnolaum]

How would I make this image circular? I mean I would like to make this image transparent around the corners so that it is shaped circular with a diameter of 28 pixels. It now has a dimension of 28x28 pixels.

I know how to draw a perfect circle with a diameter of exactly 28 pixels and place it exactly over the square, but that only leaves me with an additional layer with of a circle.

Any help will be appreciated.

[Mohammad.Harb]

Rearrage the layers, then right click on the top layer and select clipping mask

[ShinehahGnolaum]

I only see "Clip Thumbnails to Layer Bounds" and "Clip Thumbnails to Document Bounds".

[ShinehahGnolaum · Accepted solution]

Ok. I got it. I found in the menu Layer->Create Clipping Mask. That did it.

Thank you.

[Mohammad.Harb]

You need to right click  on the layer’s name to get the memu which contains clipping mask command

[azwiz1]

I want to make a square logo with a round border .

Not seeing " create clipping mask

or elipse

[Avery Sand]

You have to select both of the objects, then go to Create Clipping Mask. I just get there by searching it in 'Help'. When you click Create Clipping Mask, it will crop to the shape you've made.