Find closest multiple of $16$ to $126$. We see that $7 \times 16 = 112$ is the nearest. Now subtract $112$ from $126$ to get reminder $14$. Add $7$ to quotient.
Since $14$ is less than $16$, stop the division. The reminder is $14$. The topmost line $007$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $7$.