Malik Anderson, 19, was in court on Wednesday for a preliminary hearing.
He is accused of shooting Daquan Crump, 19, in the Somerton section of Philadelphia last month.
Police say the pair conspired to steal and resell a PlayStation 3 video game console.
However, investigators say, Crump stole the console and sold it on his own for $60, without giving Anderson a cut.
Police earlier said Crump and Anderson hung out together the night before the murder.
Then, in the early morning hours of Monday, August 19th, police say Anderson lured Crump to the demolition site.
In a statement to police, Anderson allegedly confessed to shooting his friend once in the back of the head.
Anderson is quoted in police documents as saying:
"His eyes were still open and he was staring off, like into space. I couldn't leave him there and didn't want to see him like that. I stood over him and pulled the trigger and shot him in the face until the gun stopped."
Anderson has been ordered to stay in jail until his trial.
Police say the murder weapon, a .22 caliber gun, was recovered in the refrigerator at the home where Anderson was arrested.