Find closest multiple of $485$ to $3500$. We see that $7 \times 485 = 3395$ is the nearest. Now subtract $3395$ from $3500$ to get reminder $105$. Add $7$ to quotient.
Since $105$ is less than $485$, stop the division. The reminder is $105$. The topmost line $0007$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $7$.