The student pilot and certificated flight instructor (CFI) were conducting takeoffs and landings at the accident airport. While on approach for landing, the CFI initiated a go-around, the airplane descended, and impacted a grassy area off the side of the runway. A witness who observed the accident stated that the airplane was slow and approximately 100 feet left of the runway when the go-around was initiated. She stated that the engine sounded as though it was producing full power. She observed the airplane descend as the wing flaps were retracted before impacting the ground. The airplane sustained substantial damage to the fuselage, empennage, and both left and right wings. Post accident inspection by the Federal Aviation Administration, as well as representatives from the airframe and engine manufacturers, revealed no evidence of mechanical malfunctions or anomalies with the airplane that would have precluded normal operations.