Microsoft Word does this for us with the Reference Feature, which I believe first made its appearance in Word 2007.
This tool is a Godsend, and I use it constantly. I hope you find this tool as valuable as I do!
While Word does a wonderful job of formatting references, it is not perfect and I recommend some random checks to ensure that you do not turn in improperly formatted references.
All you will need for this instructable is the source you will be using, and MicroSoft Word 2007 or newer installed on your computer.
I have included simple graphics and closeups to aid in your use of this tool.