There is one authentic hadith regarding what happens to animals in the day of Judgment. Abu Hurairah narrated that the Prophet (peace be upon him) said:

“All  creation will be gathered on Judgment Day including animals. Allah  then  judges between them (the animals) if any one of them has taken  another  animal’s right such as the goat with a horn who attacks the one  without  horns then will be treated accordingly (here it does not  mention what  the punishment is), then finally He will say to them  become dust. At that moment the disbeliever will say: ‘I wish I could turn into dust'”

Similarly, Abu Hurairah (may Allah be pleased with him) reported that the Messenger of Allah (peace be upon him) said, “On the Resurrection Day, the rights will be paid to those to whom they are due so much so that a hornless sheep will be retaliated for by punishing the horned sheep which broke its horns”. (Muslim)

This could be interpreted that all animals turn into dust or only those  ones  that transgressed against others. Scholars interpret this hadith that all animals will turn into dust. Therefore,  animals do not have a final  dwelling such as Hell or Paradise since  they are beings who are not  accountable for their actions. Allah’s judgment upon them is just to show His justice and turning them into dust is to tell the accountable creation (humans and jinns) that they do not have to pay any further for their actions other than what Allah has decreed.