State Table & Karnaugh-map for Finite State Machine
A state-transition table is very similar to a truth table for combinational logic. On the input side you have a column for each bit in the state encoding and for all of the inputs. So you need to pick a state encoding and understand what the other inputs will be. Your table must then have a row for every possible combination of the current state value and the input signals, although you can use "don't care" entries for the inputs in some cases.

On the output side of the state-transition table you show the required value of the state bits for the desired next state. At that point you can use the usual techniques for optimizing the logic implementation.