The energy spent are used to do work. Ultimately some part of the energy are wasted due to friction as sound, heat etc. and go to the surrounding. Some part are stored in the bodies on which work is done as its internal energy(KE or PE).
Yes, there is transfer of energy from one form to another or one body to another while work is being done. For example, when you are pushing a box on the floor, you apply force. Your energy(work is done by your muscles) is converted into kinetic energy of box and heat and sound energy due to friction.
No, we can't do work without transfer of energy. For work to be done, there must be transfer of energy.