On May 27, 2002, about 1700 mountain standard time, a Piper PA-38-112, N4326E, settled into the ground during a go-around from a simulated forced landing near a private airstrip about 10 miles northwest of the Kingman Airport (IGM), Kingman, Arizona. The student pilot/owner operated the airplane under the provisions of 14 CFR Part 91. The airplane sustained substantial damage. The certified flight instructor (CFI) and the student pilot were not injured. Visual meteorological conditions prevailed for the local area flight, and no flight plan had been filed. The flight departed IGM about 1500, and was scheduled to terminate at IGM. The pilots submitted written statements. The CFI stated that they were practicing engine out emergency landings. He was teaching the student an abbreviated approach to landing where the turn from base to final is rounded instead of the traditional square pattern. The CFI said that about 150 feet agl as they were tuning to final he observed that they were overshooting the centerline of the runway, and had an excessive sink rate. The CFI took the flight controls from the student and applied full power, but that did not arrest the descent. The airplane "dropped out of the sky and pancaked on the ground" next to the runway. The student confirmed the event and added that the airspeed used was the POH specified approach airspeed (65 knots). He was flying the airplane during the descent and initial turn onto final. On final the CFI took the controls from him and added power, but they weren't able to recover from the descent. Both pilots stated that when they applied power the engine power "came up right away" with no problem. The Federal Aviation Administration (FAA) accident coordinator interviewed the pilots. They stated that during the simulated engine failure over a private, dirt strip the CFI told the student pilot to slip as if he had an onboard fire. The airplane was in a bank and turning from base to final when the CFI took control of the airplane. The FAA accident coordinator also calculated performance data for the accident flight, referencing the airplane's POH recovered at the scene. She calculated that the airplane weight was 180 pounds over gross at takeoff, and 92 pounds over gross at the time of the accident. She calculated a density altitude of 5,300 feet. A wreckage distribution diagram drawn by the FAA accident coordinator showed the airplane landing to the east coming to rest in a westerly heading. The CFI said that the winds were from the south-southwest at 20 knots.