When a long-term note payable that requires annual installment payments is initially recorded,it is first recorded as a long-term note payable.Then,at the same date,a second entry is made to reclassify the current portion.

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This is true. The initial recording of a long-term note payable will be as a long-term liability on the balance sheet. However, because the installment payments are due within a year, a portion of the liability will need to be reclassified as a current liability on the balance sheet in order to accurately reflect the company's short-term obligations. This is typically done through a separate journal entry.

When a Long-Term Note Payable That Requires Annual Installment Payments