Animals have souls, but most Hindu scholars say that animal souls evolve into the human plane during the reincarnation process. So, yes, animals are a part of the same life-death-rebirth cycle that humans are in, but at some point they cease to be animals and their souls enter human bodies so they can be closer to God.
Yes as long as it is alive it has a soul, same as a human conscious. I`m not superstitious but I do believe every living thing (apart from plants and microorganisms) have souls because they have feelings. Just like a dog can feel happy or sad, or how a bee can be docile or mad.
