How to add annotating text to pictures?

1.    Insert a “Drawing canvas” (DC for short) to your Word document:

2.    Adjust the size of the DC as necessary:

3.    Right click the DC, click “Format Drawing Canvas...”, and then set its fill color to white.

4.    Insert the picture into the DC or using Cut/Paste to move an existing picture into the DC:

5.    Add the annotating text by insert callouts into the DC:

6.    Change the font of the annotating text to “Verdana” will get better result.