diff --git a/IPython/core/inputtransformer2.py b/IPython/core/inputtransformer2.py
index 29044d6..0027013 100644
--- a/IPython/core/inputtransformer2.py
+++ b/IPython/core/inputtransformer2.py
@@ -61,9 +61,10 @@ def cell_magic(lines):
     if re.match('%%\w+\?', lines[0]):
         # This case will be handled by help_end
         return lines
-    magic_name, first_line = lines[0][2:].partition(' ')
-    body = '\n'.join(lines[1:])
-    return ['get_ipython().run_cell_magic(%r, %r, %r)' % (magic_name, first_line, body)]
+    magic_name, _, first_line = lines[0][2:-1].partition(' ')
+    body = ''.join(lines[1:])
+    return ['get_ipython().run_cell_magic(%r, %r, %r)\n'
+            % (magic_name, first_line, body)]
 
 line_transforms = [
     leading_indent,
@@ -430,5 +431,4 @@ def transform_cell(cell):
         lines = transform(lines)
     
     lines = TokenTransformers()(lines)
-    for line in lines:
-        print('~~', line)
+    return ''.join(lines)
diff --git a/IPython/core/tests/test_inputtransformer2_line.py b/IPython/core/tests/test_inputtransformer2_line.py
new file mode 100644
index 0000000..9139e58
--- /dev/null
+++ b/IPython/core/tests/test_inputtransformer2_line.py
@@ -0,0 +1,21 @@
+"""Tests for the line-based transformers in IPython.core.inputtransformer2
+
+Line-based transformers are the simpler ones; token-based transformers are
+more complex.
+"""
+import nose.tools as nt
+
+from IPython.core import inputtransformer2 as ipt2
+
+SIMPLE = ("""\
+%%foo arg
+body 1
+body 2
+""", """\
+get_ipython().run_cell_magic('foo', 'arg', 'body 1\\nbody 2\\n')
+""")
+
+def test_cell_magic():
+    for sample, expected in [SIMPLE]:
+        nt.assert_equal(ipt2.cell_magic(sample.splitlines(keepends=True)),
+                        expected.splitlines(keepends=True))
diff --git a/IPython/core/tests/test_magic.py b/IPython/core/tests/test_magic.py
index 5225ec3..17f289c 100644
--- a/IPython/core/tests/test_magic.py
+++ b/IPython/core/tests/test_magic.py
@@ -700,8 +700,8 @@ class CellMagicTestCase(TestCase):
         out = _ip.run_cell_magic(magic, 'a', 'b')
         nt.assert_equal(out, ('a','b'))
         # Via run_cell, it goes into the user's namespace via displayhook
-        _ip.run_cell('%%' + magic +' c\nd')
-        nt.assert_equal(_ip.user_ns['_'], ('c','d'))
+        _ip.run_cell('%%' + magic +' c\nd\n')
+        nt.assert_equal(_ip.user_ns['_'], ('c','d\n'))
 
     def test_cell_magic_func_deco(self):
         "Cell magic using simple decorator"