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In the tutorial, Jennifer Bailey demonstrates how to add titles and subtitles to a spreadsheet using the merge, center, bold, underline, change color, and wrap text options. She starts by adding the title "Timesheet" to cell A1 by clicking on the cell and entering the text. Bailey highlights the ease of editing the text in either the cell or the formula bar. This allows for better visibility when dealing with a large amount of information in the spreadsheet.