STEP 2
Now I want to increase my canvas size. To do this first you need to activate your “background” layer and go to image>canvas size. You can also press ctrl+alt+C/cmd+opt+C.
In the canvas dialogue box. Change the width and height to 20 percent. Change the canvas color to white and press OK.
Your image and layer panel should look like this. If you open the below image then you can observe that the boundary of “layer 1” layer is transparent because when we increased our canvas size our “background” layer was selected and our background color was “white” in the canvas dialogue box.