First of the terms being used when you won a bet against someone involving money. The second one is used when you catch someone red handed, or have proof against that person doing something.
1.) Aaron: heh loser, Cough it up furball!
Dani: Fine! *gives Aaron twenty dollars*
2.) Kart: Kendra saw you kiss Pete Tora.
Kendra: so cough it up furball!