etipaced

I've made a mask and need to apply it to a layer so I can size, move and perform color corrections on this masked layer. However, when I create a new layer mask, the image I'm masking disappears, or rather it seems that the mask is applied to the layer and the image and mask don't remain independent of each other. So I'm unable to resize the masked layer. I'm attaching the before and after screen shots to demonstrate the issue I'm seeing in the layer palette. What am I missing?