Yes, that's correct. The first entry will create a liability balance and the second entry paying by check clear the account the balance and should be zero after that.

"The money received is not income but it is a current asset in my possession. Should I create an "other current asset" and use that account when recording the deposit? Then write the check and hit the liability account?"

The money received it goes to your bank account from your 1st entry and the 2nd entry (paying by check) also comes out from the bank account. So, its' in and out from the bank account. There is no need to create another current asset.

Hope this helps!