Remember that you're doing the k1, yo, k1 part of the repeat in one st. So, after you do the k1, k4, here's what you do:
K1 BUT DON'T TAKE IT OFF THE LEFT HAND NEEDLE!! So the new st is on the right needle, but the old one is still on the left needle...kind of straddling the 2. Do your yarn over and knit again into the st. Remember that it's the same one you knit before, but didn't take off. Now you can slip it off the left needle. So, on the first repeat so far, you should have 9 sts on your right needle (k1, p1, k4, and the 3 sts of k1, yo, k1) now you do the last k4 of the repeat, and start over. At the end of the row, you do the p1, k1.
To count again: 1 (from before the repeats) + 108 (the 12 repeat sts times 9 repeats) + 2 (from after the repeats) = 111
If you need more help in doing the k1, yo, k1, please let me know!