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\begin{array}{l}\phantom{503)}\phantom{1}\\503\overline{)2012}\\\end{array}
Use the 1^{st} digit 2 from dividend 2012
\begin{array}{l}\phantom{503)}0\phantom{2}\\503\overline{)2012}\\\end{array}
Since 2 is less than 503, use the next digit 0 from dividend 2012 and add 0 to the quotient
\begin{array}{l}\phantom{503)}0\phantom{3}\\503\overline{)2012}\\\end{array}
Use the 2^{nd} digit 0 from dividend 2012
\begin{array}{l}\phantom{503)}00\phantom{4}\\503\overline{)2012}\\\end{array}
Since 20 is less than 503, use the next digit 1 from dividend 2012 and add 0 to the quotient
\begin{array}{l}\phantom{503)}00\phantom{5}\\503\overline{)2012}\\\end{array}
Use the 3^{rd} digit 1 from dividend 2012
\begin{array}{l}\phantom{503)}000\phantom{6}\\503\overline{)2012}\\\end{array}
Since 201 is less than 503, use the next digit 2 from dividend 2012 and add 0 to the quotient
\begin{array}{l}\phantom{503)}000\phantom{7}\\503\overline{)2012}\\\end{array}
Use the 4^{th} digit 2 from dividend 2012
\begin{array}{l}\phantom{503)}0004\phantom{8}\\503\overline{)2012}\\\phantom{503)}\underline{\phantom{}2012\phantom{}}\\\phantom{503)9999}0\\\end{array}
Find closest multiple of 503 to 2012. We see that 4 \times 503 = 2012 is the nearest. Now subtract 2012 from 2012 to get reminder 0. Add 4 to quotient.
\text{Quotient: }4 \text{Reminder: }0
Since 0 is less than 503, stop the division. The reminder is 0. The topmost line 0004 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 4.