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In this tutorial, Leon demonstrates how to create a modern cover letter template in Word. He begins by instructing viewers to set the page format to A4 by navigating to the Layout tab and selecting Size. Next, he inserts a horizontal rectangular bar for contact information using the Insert tab and the Shapes dropdown. Leon outlines the dimensions for the rectangle: 1cm height and 21cm width for A4 paper, noting that different paper formats will require adjustments. After positioning the rectangle, he centers it using the Align options and prepares to customize its color. The video aims to guide viewers through creating a professional cover letter template.