Entering transponder codes?

I had a student squawk 7700 during a simulated engine failure. I noticed this when tower reported to "be on the lookout for an airplane in our vacinity squawking 7700." Gulp, sinking feeling, look at our transponder and Ahh Sh#$T! I was given a phone number to call when we landed.
 
I had a student squawk 7700 during a simulated engine failure. I noticed this when tower reported to "be on the lookout for an airplane in our vacinity squawking 7700." Gulp, sinking feeling, look at our transponder and Ahh Sh#$T! I was given a phone number to call when we landed.

Yeah, probably not the best idea. If I, as a controller, know what's going on I'll just move on, but unfortunately putting any of those type codes in sets off alarms at the watch desk. We had someone squawk 7700 that was lost about 6-7 months ago, and about the same time the aircraft came on frequency my supe was at the sector.
 
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