On July 3, 2000, about 1130 Eastern Daylight Time, a Cessna 172H, N8805Z, was substantially damaged during landing at the Kutztown Airport (N31), Kutztown, Pennsylvania. The certificated flight instructor and student pilot were not injured. Visual meteorological conditions prevailed and no flight plan was filed for the local instructional flight conducted under 14 CFR Part 91. According to the certified flight instructor (CFI), the accident flight was a "familiarization flight" for the student pilot. They planned to remain in the traffic pattern to practice takeoffs and landings on Runway 35, a 2,435 foot long, 240 foot wide, turf/asphalt runway. The CFI stated that the student pilot performed the first landing without any problems, "on the numbers." During the second landing, the airplane "bounced hard" on the runway, and the CFI attempted to regain control of the airplane. He added full power to initiate a go-around; however, the airspeed was "too slow," the flaps were extended, and they were "running out of runway." The CFI then aborted the go-around and attempted to land on the remaining runway. The airplane departed the left side of the runway, and impacted a hangar. The student pilot reported that he performed the first takeoff and landing to Runway 35 uneventfully. During the second approach, he extended the downwind leg of the traffic pattern to allow spacing for a glider to land prior to his landing. On short final, the student pilot extended full flaps, after he realized the airplane was a "little high." He reported that as the airplane began to "drop fairly fast" over the runway, the CFI took over the controls, and added power to avoid a hard landing. The airplane bounced on the runway and the CFI initiated a go-around. The CFI then aborted the go-around and attempted to land on the remaining runway. The airplane touched down on a grass strip to the left of the runway, and impacted a hangar with its left wingtip. It then pivoted to the left and came to rest after it struck the hangar with its right wing. According to the student pilot, he had accumulated 40 to 50 hours of total flight experience over the past 5 years. Prior to the accident flight, his last flight was "about a year ago." The CFI reported 14,479 hours of total flight time, of which 6,000 hours were in the make and model of the accident airplane. Examination of the airplane by a Federal Aviation Administration (FAA) inspector, revealed substantial damage to both wings, the propeller, and the right flap. The winds reported at an airport 10 miles away, at 1154, were from 230 degrees at 5 knots.