Find closest multiple of $23$ to $176$. We see that $7 \times 23 = 161$ is the nearest. Now subtract $161$ from $176$ to get reminder $15$. Add $7$ to quotient.
Since $15$ is less than $23$, stop the division. The reminder is $15$. The topmost line $007$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $7$.